Tanzania's mining minister ordered Acacia Mining Plc to halt wastewater pollution at its North Mara gold mine by March 30, 2019, or face permanent closure, citing risks to nearby communities. Doto Biteko stated, "The life of even one Tanzanian is worth more than their gold mining activities," emphasizing public health over mining operations.
The directive follows reports of contaminated water leaking from a waste storage dam. Acacia attributed a recent overflow to vandalism, claiming it had deployed additional pumps and containment measures. The mine accounted for 65% of the company's 2018 gold production of 336,055 ounces, according to its annual report.
Tensions between Acacia and Tanzanian authorities intensified after President John Magufuli's 2015 administration raised resource sovereignty and corruption concerns. A 2017 tax dispute saw Acacia face a $190 billion bill—four times Tanzania's GDP—which the company denies. Barrick Gold, Acacia's majority shareholder, negotiated a $300 million settlement with Tanzanian authorities, including a 50-50 profit split for a local entity managing Acacia's assets.
Analysts warn the mine's potential shutdown could threaten Acacia's financial stability, given its role as a core revenue generator. The dispute highlights ongoing challenges for the miner in Tanzania, where production at other mines has been hampered by export bans and regulatory scrutiny.
