Acacia Mining has been demanded by the Tanzanian government to settle an massive tax bill of $190bn which the gold miner has outright rejected.
The government demand comes after its committees had found out that the gold miner was operating illegally besides understating its gold exports, as per a BBC report.
Confirming that it has received a series of notices from the Tanzania Revenue Authority (TRA), Acacia said that it will evaluate all the options and rights it has, before coming up with a further update.
The notices were sent to Bulyanhulu Gold Mine (BGML), the owner and operator of the Bulyanhulu gold mine and Pangea Minerals (PML), the owner and operator of the Buzwagi gold mine.
As per the government’s assessments, BGML owes it around $154bn while PML about $36bn. A total of around $40bn has been claimed in the assessments in the form of unpaid taxes while nearly $150bn has been demanded in the form of penalties and interest owed.
Acacia said that the TRA has issued historical corporate income tax for the two miners, covering a 17-year period for BMGL from 2000 and a 10-year period for PML from 2007.
The tax assessments were issued by the government in connection with the alleged under-declared export revenues from the two mines, stated Acacia. The gold miner said that they seem to have come from the findings of the two Presidential Committees.
Acacia has rejected the findings of the committees, while stressing again that it had fully declared all its revenues.
The miner stated: “We have yet to receive copies of the reports issued by the First and Second Presidential Committees.
“The allegations made by the First and Second Committee are included in the matters that both BGML and PML have already referred to international arbitration.”
Headquartered in London, Acacia has maintained operations in Tanzania for close to 20 years. Apart from the Bulyanhulu and Buzwagi mines, it also operates in the North Mara gold mine.
Image: The Buzwagi gold mine in Tanzania. Photo: courtesy of Acacia Mining plc.