16th Aug 2019 07:59
(Alliance News) - Acacia Mining PLC said on Friday that gold production at the North Mara mine cannot resume until the Tanzanian environment council reverses a prohibition notice.
Acacia has, however, begun to receive permits from Tanzanian regulators which would permit it to export gold. Sales of this gold should allow the miner to meet "its financial obligations for an extended period of time".
The Tanzanian government in July prohibited Acacia from using the tailings storage facility at North Mara because of "failure to contain and prevent seepage", halting gold production altogether.
Tailings storage structures are a storage facility for uneconomical ore and water from the milling process.
The company added that mined ore is currently being added to stockpiles until it is allowed to produce gold again.
Acacia has been under pressure since Tanzania in 2017 banned all exports of the metal concentrate in an effort to keep processing activities in the country. The firm operates three gold mines in Tanzania: North Mara, Bulyanhulu and Buzwagi.
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