Business & EconomyTop Stories

Acacia Mining Tanzania pumped 1.6tri/- into Treasury

0
Acacia Mining Tanzania pumped 1.6tri/- into Treasury
Acacia Mining Tanzania

Acacia’s three mines – North Mara, Bulyanhulu and Buzwagi – contributed a total Shs1.61 trillion ($712) to Tanzania’s economy as well as the country’s broader social development in 2017, a recent independent report released by Ernst and Young (EY) has revealed.

The report, entitled Acacia Mining plc Total Economic and Tax Contributions in Tanzania, 2017, concludes that during the year, Acacia’s businesses purchased $434 million (Sh984 billion) of goods and services from suppliers located in Tanzania.

This represented 67% of our total spend on goods and services in 2017. Of this amount, approximately $120 million (Shs271 billion) of goods and services were purchased from businesses in the direct locality of the three mines in the country’s Lake Zone.

Despite facing several challenges during the year, in 2017 Acacia contributed $712 million (Shs1.61 trillion) to the national economy, which represents around 1.5% of Tanzania’s total gross domestic product (GDP). This compares with a total contribution of US$724 million (Sh1.64 trillion) the previous year.

Also read:   Tobacco - How smoking kills all body organs

“This report further reiterates our commitment to continue conducting our business in a way that benefits the country and host communities in which we operate,” Asa Mwaipopo, Managing Director, Tanzania, said.

Adding: “It is encouraging to see that our contribution stretches from our zone of influence to a national level as we continue to support efforts towards Tanzania’s socio-economic growth and the attainment of the Country’s Development Vision 2025.”

The 2017 contribution is comprised of $200 million (Shs453 billion) by the businesses, an indirect contribution via suppliers of $304 million (Shs689 billion) and induced contributions of $208 million (Shs471 billion).

Meanwhile, Acacia’s three mines made a total tax contribution to the Tanzanian Treasury of US$186 million (Shs421 billion), comprising $101 million (Shs229 billion) by the company, $42 million (Sh95 billion) by its employees, and a further $42 million (Shs95 billion) in indirect or induced taxes.

Also read:   Air Tanzania aims higher with new plane purchases

The EY report also highlighted that during the year Acacia’s businesses employed nearly 2,800 workers in Tanzania, over 96% of whom are Tanzanian and paid wages and benefits totalling more than US$111 million (Shs251 billion).

Acacia’s total direct, indirect and induced economic contribution in Tanzania in 2017 included over 33,500 jobs and approximately $345 million (Shs782 billion) of labour income. The company’s supply chain spending alone supported nearly 19,000 indirect wage-earning jobs in Tanzania.

Besides its economic contribution, in 2017 all three of Acacia’s mines spent significantly on their social investment programmes which seek to support the government’s development agenda and Vision 2025.

During the year the three mines invested over US$8 million (TZS18 billion) in social projects in Tanzania, including over US$3.5 million (TZS8 billion) on initiatives in education, health, infrastructure, and water and sanitation.

Also read:   Total pledges more investments in Tanzania

Acacia Mining plc is the UK holding company of the Acacia Group, Tanzania’s largest gold miner and one of the largest producers of gold in Africa. The Acacia Group has three mines, all located in north-west Tanzania.

Bulyanhulu, which is owned and operated by Bulyanhulu Gold Mine Limited, Buzwagi, which is owned and operated by Pangea Minerals Limited and North Mara, which is owned and operated by North Mara Gold Mine Limited.

The Acacia Group also has a portfolio of exploration projects in Kenya, Burkina Faso and Mali. Acacia is a UK public company headquartered in London. We are listed on the Main Market of the London Stock Exchange with a secondary listing on the Dar es Salaam Stock Exchange.

Barrick Gold Corporation is our majority shareholder. Acacia reports in US dollars and in accordance with IFRS as adopted by the European Union unless otherwise stated in this announcement.

Acacia Mining Tanzania

Acacia Mining Tanzania, Bulyanhulu