India slashes import tax on gold, silver to tackle smuggling
Local gold prices hit their lowest level in more than three months after the announcement.
Acacia Mining’s Buzwagi mine in Tanzania. (Image courtesy of Acacia Mining)
Acacia Mining Plc (LON:ACA), spun off from Barrick Gold (TSX, NYSE:ABX) in 2010, will soon hear whether it will have to pay a former partner in Tanzania about $115 million over the loss of a concession in the African country.
Bismark Hotels Co., a closely held Tanzanian company, accuses Acacia — formerly African Barrick Gold — of failing to renew the license for 16.8 square kilometers of the original 68 square kilometers (26 square miles) concession. Bismark claims such move led to the loss of the potential mining area, now in hands of Chinese investors.
According to African Intelligence (subs. required), Bismark and Acacia’s subsidiary Pangea Minerals had a joint prospecting and mining partnership for the region from 1995 to 2012. That year, Acacia handed exploration licenses back to Bismark, which claims it only discovered the permit hadn’t been renewed after the partnership was terminated and it began talks with potential South African investors.
Bismark has requested a $115 million compensation claim from Acacia. The arbitration verdict is expected in October.
