Tanzania's government has hit the country's leading gold producer with a $150 billion fine

godfred akoto

July 25, 2017 8:08 AM

The fine is the largest ever imposed on a mining company in Africa as tensions continue to rise over President Magafuli's stance on mining contracts

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Tanzania’s leading producer of gold,Acacia Mining has been hit with a record $190 billion in fines and unpaid taxes from the government as a dispute between the two parties escalates.

In a statement released by the Canadian company, it said that it been sent a $40 billion tax bill as well as $150billion in penalties and interests owed.

The issues between the two parties have escalated since Tanzanian president Magafuli,declared a ban on the export of concentrates and also ripped up mining contracts .The government accuses the company,which has 64% of its stakes held by Barrick, of under declaring export revenues from two of its mines in Bulyanhuku and Buzwagi for a considerable period of time, a claim the company has denied.

“As we have stated previously, Acacia refutes each set of findings and re-iterates that it has fully declared all revenues,” the company said in a press release. “Acacia disputes these assessments. The Company is considering all of its options and rights and will provide a further update in due course.”

The fines could be a world record for and it’s announcement has affected trading of the company’s stock on the London Stock Exchange.

According to Bloomberg the bill of $190 billion is equal to 200 years of the revenue generated by the gold producer whose total reported revenue from 2016 was stated as $1.05 billion.

godfred akoto