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Acacia shares plunge on Tanzanian investigation report

Acacia Mining plc shares plunged by over 9% in London in the noon trade June 12 after the company rejected the findings of the second presidential committee report on mineral concentrate exports in Tanzania.

The report accused the company of under-declaring taxes and revenue by tens of billions of U.S. dollars over several years.

"We have always conducted our business to the highest standards and operated in full compliance with Tanzanian law. We re-iterate that we have declared everything of commercial value that we have produced since we started operating in Tanzania and have paid all appropriate royalties and taxes on all of the payable minerals that we produce," the company said.

The London-listed miner previously rejected the first report of the presidential committee's investigation into the export of gold and copper concentrates.

The report has made several recommendations, including the payment of outstanding taxes and royalties, renegotiation of large-scale mineral development agreements, government ownership in the mines and the continuation of the mineral export ban.

The Barrick Gold Corp. unit noted that it remains open to further dialogue with the government on the issue and will continue to assess all of its options.

The company warned last week that it will place its Bulyanhulu mine in the country on care and maintenance if it gets to a point following the release of the second report where it sees an impasse in dialogue with the government, adding that the burn on cash could also trigger the move.

The mine has been losing an estimated US$15 million a month since the export ban was put in place.