Acacia Mining PLC confirmed that an environmental protection order will be issued against its North Mara gold mine in Tanzania after a government probe revealed that the mine leaked polluted water into nearby communities and rivers.
The Tanzanian government previously threatened to shut down the mine and fined the company 300 million Tanzanian shillings.
Local daily The Citizen wrote May 17 that Acacia was slapped with a new fine of 5.6 billion shillings. The company said in a same-day release that mine operator North Mara Gold Mine Ltd. has yet to receive a government order, and it was still reaching out to authorities to seek clarification.
According to the report, the government assured that Acacia's mining license will not be revoked as it did not find any issues on the mining process. However, the company was given three weeks to fix defects in the mine's sewage infrastructure. The Barrick Gold Corp. unit is currently working on a new tailings storage facility.
Acacia said operations remain unaffected.
As of May 17, US$1 was equivalent to 2,296.50 Tanzanian shillings.