Techinical explanation on Concentrate Ban from ACACIA Chief Operating Officer


king Davidson

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king Davidson

king Davidson

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How and why do we produce gold and copper concentrates?

On Friday 3rd March, the Ministry of Energy and Minerals issued a press release stopping the export of mineral sands on the basis that companies should be investing in building smelters in Tanzania for further processing, rather than shipping this product to other countries.

The directive has been in place for two weeks now and affects Acacia at both Bulyanhulu and Buzwagi, which produce a concentrate containing gold, copper and silver. North Mara is not affected.

Our CEO, Brad Gordon was in Tanzania last week to attend urgent meetings with government officials and to try and explain the impact that this ban will have on our business even while we have further dialogue on a suitable way forward to explore smelter options for Tanzania. At this stage, the ban remains in place though we remain hopeful that there will be some positive news in the near future so that normal operations can be restored.

The export of mineral sands, or in our case, the sale of gold and copper concentrate, is an emotive subject in every country with sovereign mineral wealth. There is a view that Tanzania is losing considerable added value by not smelting and refining concentrates in country, while there is another view that companies are also stealing from Tanzania by not declaring all the metals contained in the concentrate.

These are serious issues, with serious consequences for our integrity and the sustainability and profitability of our business and the Tanzanian mining industry. For Acacia to be successful in Tanzania, we must be able to address and correct these misconceptions. Just so everyone is clear, at our mines, we generate our revenue by:

1. Producing and selling gold bars (doré) which are then refined into a more pure gold product – this accounts for 55% of revenues at Bulyanhulu, 45% of revenues at Buzwagi and 100% of revenues at North Mara


2. Producing and selling a concentrate which is smelted and refined to separate out the gold, copper and silver – this accounts for 45% of revenues at Bulyanhulu, 55% of revenues at Buzwagi and 0% of revenues at North Mara


Gold sales account for 95% of total revenues, with 70% coming from doré sales and 25% coming from gold contained within the concentrate. The remaining 5% of revenues is from copper in the concentrate and a very small amount of silver. On this basis, the company is currently losing 30% of its total revenue stream, and around 50% of the combined revenues of Bulyanhulu and Buzwagi. With the concentrate ban in place, this equates to lost revenue of more than $1 million per day (with additional revenue lost for all of the concentrate sitting in Dar es Salaam waiting for shipment for which royalties have been paid).


Addressing the issue of trust


There is a perception that we do not declare everything that is in our concentrate. This is simply not true.

The Tanzania Minerals Audit Agency (TMAA) is present at each of our mines and even has padlocks and seals on various pieces of equipment inside the gold room so that we cannot operate them without the TMAA being physically present to verify everything that we do. Every gold bar and every shipping container of concentrate is sampled so that we know the content of gold, copper and silver. Four samples are taken: one for Acacia, one for the TMAA, one for the overseas smelter and one umpire sample which is kept separate and used if there is a dispute or difference between the other samples.

Further to having the TMAA on site, when it comes time to transporting the gold bars or the concentrate, the Tanzania Revenue Authority (TRA) is also present to observe the process. Before the containers of concentrate can be loaded onto trucks, we must know the value of the gold, copper and silver in the concentrate from the samples taken, and pay the royalty to the government. When the royalty is received in the government bank accounts, the containers are sealed by the TMAA and TRA and then trucking can commence.

What is a concentrate and why do we produce it?

How we process our ore to liberate the contained precious minerals is determined by how and why these minerals were originally formed or deposited in the rocks hundreds of millions or billions of years ago. The scientific fields of geology, mining engineering and metallurgy (mineral processing) are fascinating and require an in depth understanding of the best way to find, mine and process (extract) the payable minerals.

In general terms, when gold is the only payable mineral present (i.e. >98-99% of the value), we can process the ore on the mine site and create gold bars. At both North Mara and Geita, gold is extracted using gravity techniques for the coarse, free gold and then cyanide to leach the finer disseminated gold. Gold bars are smelted at both mines.

Bulyanhulu and Buzwagi have slightly different processes, due to the rock types at the mines which host the gold (95% of the value) and other payable metals such as copper and silver (the remaining 5% of the value). Both mines are still able to extract around half of their gold using gravity and cyanide leach techniques. However we need to use more elaborate techniques to break down the sulphide rock so that the rest of the gold, copper and silver can be liberated.

Fortunately, we can concentrate the sulphides using a process called ‘flotation’ where chemicals are added to the finely ground rock, causing the ore to float and thus separate from the waste rock. The flotation processes are very effective and allow for the gold, copper and silver to be concentrated into a product with much higher values and a much smaller mass than was originally mined:

 Bulyanhulu Mine can process 1.0 million tonnes of underground ore per year and, through the flotation process, remove most of the waste rock and concentrate the minerals into approximately 25,850 tonnes of concentrate containing gold and copper. That is nearly a 40 times reduction in mass which then makes the resultant concentrate valuable enough to sell


 Buzwagi Mine can process 4.4 million tonnes of open pit ore per year which is much lower grade and, through flotation, remove most of the waste rock and concentrate the minerals into approximately 25,750 tonnes of concentrate containing gold and copper. That is nearly a 200 times reduction in mass which then makes the resultant concentrate valuable enough to sell
We can never recover 100% of the gold, silver and copper from our ore. At Bulyanhulu, our gravity, cyanide leach and flotation processes are maximised to achieve the best gold recovery whilst recovering sufficient copper to make the concentrate worthwhile for the smelters (whose primary product in copper) to even want to purchase from us.


I trust that people understand from this brief description, that it is the type of orebody that dictates the processing options that we use. In some respects, North Mara and Geita are actually lucky because they are able to do all of their processing on site and only produce gold bars. For the Bulyanhulu and Buzwagi concentrates, gold is still the most important product as the copper and silver is only 10-15% of the value of the concentrate.


Downstream Processing

It appears that one of the main concerns causing the ban on our selling concentrates for export is that we should be doing all of the downstream processing in Tanzania because otherwise the country doesn’t potentially get full benefit for its minerals. It is important to note that our gold/copper/silver concentrates are already a highly processed and beneficiated product.

Whilst the smelters do charge to process our concentrate, on average for the contract terms that we have agreed with the overseas smelters, we receive 97% of the total value of gold, silver and copper. That is because with any smelting or other chemical process, getting 100% recovery is impossible and these terms pass the risk to the overseas smelters to ensure that they can actually achieve above these recovery rates (or they will lose money). In Tanzania (if a smelter were built), the smelter operator would need to offer competitive terms, not just on price but also on recovery of the various metals, therefore their margins would depend on their own processing costs and efficiency.

There are generally two different types of downstream treatment options to extract the gold, copper and silver from the concentrate: smelting and oxidation. There are three types of oxidation process: roasting, pressure oxidation and biooxidation. The type of process used will depend on a number of variables including the types of ore, size of facility and access to cheap power.

1) Smelting: involves heating the concentrate to 1,200°C to melt the valuable metals (gold, copper and silver)

2) Roasting: essentially ‘cooking’ the concentrate at 750°C and isolating the gold, copper and silver by converting the sulphur in the sulphide minerals into sulphur dioxide gas (which then produces large volumes of sulphuric acid)

3) Pressure oxidation: an autoclave (massive oven) operating at temperatures of 190 - 225°C and high pressures of 1.9 - 3.2 MPa (many components constructed from titanium due to the aggressive conditions)

4) Bio-oxidation: use bacteria in a liquid wash at 42°C, which literally ‘eat’ the sulphide away from the contained gold, copper and silver

There is a lot more detail which can be provided to explain these various processing techniques, though in each case the copper is first separated from the gold and silver and these are treated separately to get the final metal product.

If our mines were able to build dedicated downstream processing facilities, they would be tiny compared to the large commercial smelters. Furthermore, power costs in Tanzania are high compared to other countries with developed smelting industry. When the mines were being built (Bulyanhulu in 1999-2000 and Buzwagi in 2007-2008), studies showed that it was far more cost effective to sell the concentrates to large commercial toll smelters with access to cheap power rather than build our own. We currently sell our concentrate to smelters in Germany, China and Japan.

Based on the current mine plan, Buzwagi will only produce concentrate for another 18 months, after which time, when it is processing the low grade oxide stockpiles, it will not recover any copper and all gold will recovered by gravity and cyanide leach. This will leave Bulyanhulu as the only large scale mine in Tanzania which produces a concentrate.

What do you think?

As employees of Acacia, or contractors working at the Acacia mines, or family and friends, you will no doubt wonder why there is no smelting facility for our gold, copper and silver concentrates in Tanzania.

Ultimately, if it made economic sense to do so – for the country and for the company – then such facilities would have been built. In the south of the DRC and in northern Zambia (all part of the same copper belt, where copper is the primary product), there are sufficient mines producing copper concentrate to warrant constructing large smelters and refineries in country to serve a number of mines which can share the cost. In South America, some of the copper mines – such as Chuquicamata in Chile – are so large that they do their own downstream processing (with a capacity of 855,000 tonnes per year, compared to the Bulyanhulu requirement of just 25-30,000 tonnes per year).

The TMAA conducted an independent study into the construction of a smelter for copper and gold in Tanzania which was updated in early 2011 and which concluded that it was not viable to do so. Acacia has offered to fund the Government conducting an update of this study (though we would not be involved in the study itself), to see whether the situation has changed.

It is important that we all understand more about this concentrate ban so that when it is discussed in different circles, more informed comments and discussions can be had. This issue really is affecting all of us. Please do provide feedback so that we can help to make this matter easier to understand, build trust and explain. With the current approach, we believe we are doing the best for Tanzania and Acacia, by downstream processing our gold and copper ore into a gold copper concentrate on site in Tanzania and then selling this product for smelting and refining in other countries.

Asante Sana

Mark Morcombe
Chief Operating Officer
 
king Davidson

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kwa wasio jua kiswahili maelezo hayo hapo juu kazi kwenu.
 
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nyabhingi

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that swahili version was for magogoni,now this is mine to digest.
 
Hakikwanza

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Hakikwanza

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Thank you, Mark Morcombe Chief Operating Officer ACASIA for your explanation , We are suppose to pass through contract
 
Samantha Cole

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Samantha Cole

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The People of Tanzania are long time used to your Barrick Gold - Acacia Mining" media machine that is ALWAYS in favor of your companies and against Mwananchi.
Your management are like the mafia in our country.
Your mining is good, your management must change.
Always there is problems from your management. TAX EVASION, CORRUPTION, BRIBERY, FRAUD, and we must include MURDER, POISON IN OUR WATER, ENVIRONMENT DISASTERS, DESTROYING PROPERTY. Must we continue?
Our President will find the truth in those containers.

Whatever you write above means NOTHING.
Why?
Because whatever is inside those containers is worth some mineral value otherwise you will NOT pay to pack the containers and ship them overseas.
Whatever minerals are inside come from OUR ground.
Show our President where is all the money from many hundreds or thousands of containers that you exported ? Where is Tanzania's royalties share of that money?

You are mafia and this is NOT Barrick Gold - Acacia Mining COLONY. Those days are finished. We have engineers and specialists now. You take us all for stupid ??? You are wrong!!!!!!
 
gatekeepertz

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gatekeepertz

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i do agree that acacia as company has nothing to be blamed on this issue, As business always struggle to make their investment profitable as they can.
As long they have formal agreement with Tanzania gavernment on all this. Why should we blame Them? Due to their good negotiations skills, they managed to attain the contract successful.

My concern should Tanzania government honor the gentlemen agreement as suppose to be, if they think there was some Incompetence, error, corruption or any kind of manipulations in attaining or negotiating the contract, there is proper procedures to rectify the problem.

This dictatorial ban might put government into deep hole that will be difficult to escape easily.

Serikali must admit mistake and correct it in wise and correct manner. Or else uchumi utayumba
 
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Samantha Cole

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His boss sent him... You know... his big boss in Toronto? Kelvin Dushnisky? The chairman of the Acacia mining board of directors? The one who receives millions and millions of dollars salary for his brilliant work making profits for Barrick Gold and Acacia Mining?

His smaller boss from London is Brad Gordon. We wont see him in Tanzania for a while because of the risk that he will be arrested and prosecuted for defiance of our President's ban on exports of ore sand
 
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Are you also part of the TAX EVASION, CORRUPTION, BRIBERY, FRAUD, and we must include MURDER, POISON IN OUR WATER, ENVIRONMENT DISASTERS, DESTROYING PROPERTY. Must we continue?
 
Masunga Maziku

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Masunga Maziku

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How and why do we produce gold and copper concentrates?

On Friday 3rd March, the Ministry of Energy and Minerals issued a press release stopping the export of mineral sands on the basis that companies should be investing in building smelters in Tanzania for further processing, rather than shipping this product to other countries.

The directive has been in place for two weeks now and affects Acacia at both Bulyanhulu and Buzwagi, which produce a concentrate containing gold, copper and silver. North Mara is not affected.

Our CEO, Brad Gordon was in Tanzania last week to attend urgent meetings with government officials and to try and explain the impact that this ban will have on our business even while we have further dialogue on a suitable way forward to explore smelter options for Tanzania. At this stage, the ban remains in place though we remain hopeful that there will be some positive news in the near future so that normal operations can be restored.

The export of mineral sands, or in our case, the sale of gold and copper concentrate, is an emotive subject in every country with sovereign mineral wealth. There is a view that Tanzania is losing considerable added value by not smelting and refining concentrates in country, while there is another view that companies are also stealing from Tanzania by not declaring all the metals contained in the concentrate.

These are serious issues, with serious consequences for our integrity and the sustainability and profitability of our business and the Tanzanian mining industry. For Acacia to be successful in Tanzania, we must be able to address and correct these misconceptions. Just so everyone is clear, at our mines, we generate our revenue by:

1. Producing and selling gold bars (doré) which are then refined into a more pure gold product – this accounts for 55% of revenues at Bulyanhulu, 45% of revenues at Buzwagi and 100% of revenues at North Mara


2. Producing and selling a concentrate which is smelted and refined to separate out the gold, copper and silver – this accounts for 45% of revenues at Bulyanhulu, 55% of revenues at Buzwagi and 0% of revenues at North Mara


Gold sales account for 95% of total revenues, with 70% coming from doré sales and 25% coming from gold contained within the concentrate. The remaining 5% of revenues is from copper in the concentrate and a very small amount of silver. On this basis, the company is currently losing 30% of its total revenue stream, and around 50% of the combined revenues of Bulyanhulu and Buzwagi. With the concentrate ban in place, this equates to lost revenue of more than $1 million per day (with additional revenue lost for all of the concentrate sitting in Dar es Salaam waiting for shipment for which royalties have been paid).


Addressing the issue of trust

There is a perception that we do not declare everything that is in our concentrate. This is simply not true.

The Tanzania Minerals Audit Agency (TMAA) is present at each of our mines and even has padlocks and seals on various pieces of equipment inside the gold room so that we cannot operate them without the TMAA being physically present to verify everything that we do. Every gold bar and every shipping container of concentrate is sampled so that we know the content of gold, copper and silver. Four samples are taken: one for Acacia, one for the TMAA, one for the overseas smelter and one umpire sample which is kept separate and used if there is a dispute or difference between the other samples.

Further to having the TMAA on site, when it comes time to transporting the gold bars or the concentrate, the Tanzania Revenue Authority (TRA) is also present to observe the process. Before the containers of concentrate can be loaded onto trucks, we must know the value of the gold, copper and silver in the concentrate from the samples taken, and pay the royalty to the government. When the royalty is received in the government bank accounts, the containers are sealed by the TMAA and TRA and then trucking can commence.

What is a concentrate and why do we produce it?

How we process our ore to liberate the contained precious minerals is determined by how and why these minerals were originally formed or deposited in the rocks hundreds of millions or billions of years ago. The scientific fields of geology, mining engineering and metallurgy (mineral processing) are fascinating and require an in depth understanding of the best way to find, mine and process (extract) the payable minerals.

In general terms, when gold is the only payable mineral present (i.e. >98-99% of the value), we can process the ore on the mine site and create gold bars. At both North Mara and Geita, gold is extracted using gravity techniques for the coarse, free gold and then cyanide to leach the finer disseminated gold. Gold bars are smelted at both mines.

Bulyanhulu and Buzwagi have slightly different processes, due to the rock types at the mines which host the gold (95% of the value) and other payable metals such as copper and silver (the remaining 5% of the value). Both mines are still able to extract around half of their gold using gravity and cyanide leach techniques. However we need to use more elaborate techniques to break down the sulphide rock so that the rest of the gold, copper and silver can be liberated.

Fortunately, we can concentrate the sulphides using a process called ‘flotation’ where chemicals are added to the finely ground rock, causing the ore to float and thus separate from the waste rock. The flotation processes are very effective and allow for the gold, copper and silver to be concentrated into a product with much higher values and a much smaller mass than was originally mined:

 Bulyanhulu Mine can process 1.0 million tonnes of underground ore per year and, through the flotation process, remove most of the waste rock and concentrate the minerals into approximately 25,850 tonnes of concentrate containing gold and copper. That is nearly a 40 times reduction in mass which then makes the resultant concentrate valuable enough to sell


 Buzwagi Mine can process 4.4 million tonnes of open pit ore per year which is much lower grade and, through flotation, remove most of the waste rock and concentrate the minerals into approximately 25,750 tonnes of concentrate containing gold and copper. That is nearly a 200 times reduction in mass which then makes the resultant concentrate valuable enough to sell
We can never recover 100% of the gold, silver and copper from our ore. At Bulyanhulu, our gravity, cyanide leach and flotation processes are maximised to achieve the best gold recovery whilst recovering sufficient copper to make the concentrate worthwhile for the smelters (whose primary product in copper) to even want to purchase from us.


I trust that people understand from this brief description, that it is the type of orebody that dictates the processing options that we use. In some respects, North Mara and Geita are actually lucky because they are able to do all of their processing on site and only produce gold bars. For the Bulyanhulu and Buzwagi concentrates, gold is still the most important product as the copper and silver is only 10-15% of the value of the concentrate.


Downstream Processing

It appears that one of the main concerns causing the ban on our selling concentrates for export is that we should be doing all of the downstream processing in Tanzania because otherwise the country doesn’t potentially get full benefit for its minerals. It is important to note that our gold/copper/silver concentrates are already a highly processed and beneficiated product.

Whilst the smelters do charge to process our concentrate, on average for the contract terms that we have agreed with the overseas smelters, we receive 97% of the total value of gold, silver and copper. That is because with any smelting or other chemical process, getting 100% recovery is impossible and these terms pass the risk to the overseas smelters to ensure that they can actually achieve above these recovery rates (or they will lose money). In Tanzania (if a smelter were built), the smelter operator would need to offer competitive terms, not just on price but also on recovery of the various metals, therefore their margins would depend on their own processing costs and efficiency.

There are generally two different types of downstream treatment options to extract the gold, copper and silver from the concentrate: smelting and oxidation. There are three types of oxidation process: roasting, pressure oxidation and biooxidation. The type of process used will depend on a number of variables including the types of ore, size of facility and access to cheap power.

1) Smelting: involves heating the concentrate to 1,200°C to melt the valuable metals (gold, copper and silver)

2) Roasting: essentially ‘cooking’ the concentrate at 750°C and isolating the gold, copper and silver by converting the sulphur in the sulphide minerals into sulphur dioxide gas (which then produces large volumes of sulphuric acid)

3) Pressure oxidation: an autoclave (massive oven) operating at temperatures of 190 - 225°C and high pressures of 1.9 - 3.2 MPa (many components constructed from titanium due to the aggressive conditions)

4) Bio-oxidation: use bacteria in a liquid wash at 42°C, which literally ‘eat’ the sulphide away from the contained gold, copper and silver

There is a lot more detail which can be provided to explain these various processing techniques, though in each case the copper is first separated from the gold and silver and these are treated separately to get the final metal product.

If our mines were able to build dedicated downstream processing facilities, they would be tiny compared to the large commercial smelters. Furthermore, power costs in Tanzania are high compared to other countries with developed smelting industry. When the mines were being built (Bulyanhulu in 1999-2000 and Buzwagi in 2007-2008), studies showed that it was far more cost effective to sell the concentrates to large commercial toll smelters with access to cheap power rather than build our own. We currently sell our concentrate to smelters in Germany, China and Japan.

Based on the current mine plan, Buzwagi will only produce concentrate for another 18 months, after which time, when it is processing the low grade oxide stockpiles, it will not recover any copper and all gold will recovered by gravity and cyanide leach. This will leave Bulyanhulu as the only large scale mine in Tanzania which produces a concentrate.

What do you think?

As employees of Acacia, or contractors working at the Acacia mines, or family and friends, you will no doubt wonder why there is no smelting facility for our gold, copper and silver concentrates in Tanzania.

Ultimately, if it made economic sense to do so – for the country and for the company – then such facilities would have been built. In the south of the DRC and in northern Zambia (all part of the same copper belt, where copper is the primary product), there are sufficient mines producing copper concentrate to warrant constructing large smelters and refineries in country to serve a number of mines which can share the cost. In South America, some of the copper mines – such as Chuquicamata in Chile – are so large that they do their own downstream processing (with a capacity of 855,000 tonnes per year, compared to the Bulyanhulu requirement of just 25-30,000 tonnes per year).

The TMAA conducted an independent study into the construction of a smelter for copper and gold in Tanzania which was updated in early 2011 and which concluded that it was not viable to do so. Acacia has offered to fund the Government conducting an update of this study (though we would not be involved in the study itself), to see whether the situation has changed.

It is important that we all understand more about this concentrate ban so that when it is discussed in different circles, more informed comments and discussions can be had. This issue really is affecting all of us. Please do provide feedback so that we can help to make this matter easier to understand, build trust and explain. With the current approach, we believe we are doing the best for Tanzania and Acacia, by downstream processing our gold and copper ore into a gold copper concentrate on site in Tanzania and then selling this product for smelting and refining in other countries.

Asante Sana

Mark Morcombe
Chief Operating Officer
You are narrating and giving figures in percentages and tons that the company is making in mines and yet the government does not see the revenue!

You are just only presenting mining activities [geology, mining methods, mineral processing techniques, metallurgy and partially you pass through TRA & TMAA] without considering mineral economy - The Net Smelting Returns!

But how much the ore concentrates are actually worth and how much the government is actually getting?

How much does the company earn after exporting and smelting ore concentrates?

Does the government responsible to know the value obtained after smelting?

If NO, why? If YES, who is government representative to make sure things are on the same page?

This report seems to be narrated by the Acacia themselves! Now they are either feeling the gut at their back or have been collusive in the robbery for so long, they cannot admit their corruption.

Purposely, this particular report is not so satisfactory to be public announcement, it is too technical, writing foggy and confusing data that shares no real information and calling it transparency!

They know they are caught and the President is right, the minerals will one day be gone and if the contracts do not benefit the people of TANZANIA, all minerals of our country will only go to build the countries where the raw materials are turned into products.

They don't care what we get as a country, only win - lose intimidation and market manipulation.

It's disheartening and sickening to see this example of how multinational company try to confuse language and act like missionaries.
 
Samantha Cole

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Samantha Cole

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you are narrating and giving figures in percentages and tons that the company is making in mines and yet the government does not see the revenue!

You are just only presenting mining activities [geology, mining methods, mineral processing techniques, metallurgy and partially you pass through TRA & TMAA] without considering mineral economy - Net Smelting Returns.

But how much the ore concentrates are actually worth and how much the government is actually getting?

How much does company earn after exporting and smelting ore concentrates?

Does government responsible to know the value obtained after smelting?

If NO, why? If YES, who is government representative to make sure things are on the same page?

This report seems to be narrated by the Acacia themselves! Now they are either feeling the guts at their back or have been collusive in the robbery for so long, they cannot admit their corruption.

Purposely, this particular report is not so satisfactory to be public announcement, it is too technical, writing foggy and confusing data that shares no real information and calling it transparency!

They know they are caught and the President is right, the minerals will one day be gone and if the contracts do not benefit the people of Tanzania all minerals of our country will only go to build the countries where the raw materials are turned into products. They don't care what we get as a country, only win - lose intimidation and market manipulation.

It is disheartening and sickening to see this example of how multinational company try to confuse language and act like missionaries.
The answers of the revenue and profits that Acacia Mining is earning can be seen in the financial reports in the Acacia website. The bottom line and painful truth is that the company in UK is one office. They own 3 mines in Tanzania. ALL THEIR REVENUE COMES FROM TANZANIA.
Here, in our country, they claim big losses.
There, in the UK, the office people make hundreds of MILLIONS of US Dollars profit.
Who can explain that?
This man, Mark Morcombe, cannot explain.
Acacia Mining are GUILTY of PRICE TRANSFERRING.
President Magufuli will prove this to the world. Then Acacia bosses will come to the table and bring money to fix these crimes.

 
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I m waiting for the Tz government to come up with Facts and figures to counteract the Barrick Statement.The statement should Tell the citizens the Contractual terms where we went astray and means to avoid falling in the same pit.It should tell us how much we have been losing and how we are going to circumvent the losses ( if any) in the future,not only in mining,but in will Foreign investments.
 
Masunga Maziku

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The answers of the revenue and profits that Acacia Mining is earning can be seen in the financial reports in the Acacia website. The bottom line and painful truth is that the company in UK is one office. They own 3 mines in Tanzania. ALL THEIR REVENUE COMES FROM TANZANIA.
Here, in our country, they claim big losses.
There, in the UK, the office people make hundreds of MILLIONS of US Dollars profit.
Who can explain that?
This man, Mark Morcombe, cannot explain.
Acacia Mining are GUILTY of PRICE TRANSFERRING.
President Magufuli will prove this to the world. Then Acacia bosses will come to the table and bring money to fix these crimes.
It's true for what you are saying but let us waiting for king Davidson to come out with vivid explanations.
 
gatekeepertz

gatekeepertz

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gatekeepertz

gatekeepertz

Senior Member
Joined Aug 14, 2016
181 232 60
His boss sent him... You know... his big boss in Toronto? Kelvin Dushnisky? The chairman of the Acacia mining board of directors? The one who receives millions and millions of dollars salary for his brilliant work making profits for Barrick Gold and Acacia Mining?

His smaller boss from London is Brad Gordon. We wont see him in Tanzania for a while because of the risk that he will be arrested and prosecuted for defiance of our President's ban on exports of ore sand
In this world hate has nothing to do with ur poverty, bravely yield abundantly.
 
Masunga Maziku

Masunga Maziku

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Masunga Maziku

Masunga Maziku

Verified Member
Joined Dec 9, 2011
2,257 0 280
20170402_045009-jpg.490322

The problem with our past governments was to give away their power to foreign mining companies for no reason. Any mine should be 51% or 49% local owned like in Botswana.

This is because mining has narrow profits compared to its running costs, so we have to forget about making laws based on profits and involved in joint venturing.

It's well known that, the only way government generates income from mining is through taxes, PAYE and a tiny sliver for loyalty fees in addition to the spin off jobs.

If you notice, Chinese miners or any other Chinese firm use only their own people, they do not hire a large number of natives. They own the entire mine or any firm and use tax scheme to duck royalty and taxes.

As a result, there is zero benefit to government from its resources because there is no way for their activities to add value to the economy and communities of the country.

Does Botswana allow unlimited foreign companies to come in and employ a large number of foreigners? Definitely not! The mines in Botswana are undertaken jointly by two parties [government & foreign investors] who pay taxes, hire a large number of natives and use internal suppliers.

We have to learn on how to make the mining industry a stepping stone to other job creation methods and strategies. We should take an example from Botswana which used its gemstones and precious metals to promote commerce and social infrastructures.
 
Masunga Maziku

Masunga Maziku

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Masunga Maziku

Masunga Maziku

Verified Member
Joined Dec 9, 2011
2,257 0 280
img_20170411_075043-jpg.494149

I agree wholeheartedly with his actions as a President, but appointing a second committee to conduct an investigation into the mineral content of impounded copper concentrate [metallurgical accounting assessment] is nothing without considering the legislative framework of Tanzania's laws governing the mining industry.

We need the constitutional reform agenda on a mining legal framework. This has to be due to some sort of corruption in the past governments.
 

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