(Alliance News) - The government of Tanzania has ordered Acacia Mining PLC to stop using the tailings storage facility at the North Mara mine, the company said Wednesday.
A prohibition order has been served ordering Acacia to stop using the facility by Saturday, citing a "failure to contain and prevent seepage".
Acacia is looking to talk with the National Environment Management Council immediately, it said, and said no seepage leaks into the surrounding environment, including water sources.
Acacia has already been fined, in May, for breaching environmental rules at North Mara, specifically to do with the tailings facility. The government in January ordered it to build a new facility, and planning and design is currently ongoing.
On Friday last week, Acacia said the Tanzanian Mining Commission will soon be inspecting North Mara, following which export permits for gold shipments will be issued.
Acacia has been under pressure since Tanzania in 2017 banned all exports of metal concentrate in an effort to keep processing activities in the country. Acacia has three producing mines in Tanzania: Buzwagi, Bulyanhulu, and North Mara.
Also Wednesday, Acacia said it has asked to postpone arbitration hearings against the government in Tanzania to allow parent Barrick Gold Corp, which is making an offer for Acacia currently, more time to come up with a resolution.
Acacia shares were flat on Wednesday morning in London at a price of 181.60 pence each.
