25 April 2017

Tanzania: Acacia, Petra Engage Govt Over IPO

Photo: The Citizen
Acacia mining (file photo).

Acacia Mining and Petra Diamonds are said to engage with the government regarding offloading 30 per cent to public as stipulated by new law.

The law--enacted last mid last year--wants mining firms and telecoms shares to be held by public by 30 per cent and 25 per cent respectively. Capital Markets and Securities Authority Principal Public Relations Manager, Charles Shirima, said he was not aware of the ongoing discussion but affirmed that all mining firms are required to offload their share to public.

"The government has 25 per cent stake in Williamson Diamonds, but still those shares are not public held.

"... Therefore they have to discuss with Petra on modality of letting public holding 30 per cent stake as per law stating," Mr Shirima told Daily News yesterday.

Petra Diamonds owns jointly Williamson Diamonds with the government under a 75 and 25 per cents stakes. Media reported from South Africa, when Petra Diamonds was revealing their quarter three performance that the largest gold firm in the country was discussing with the government regarding implementing of the law.

Petra Diamonds CEO Johan Dippenaar only said they are discussing the issue and declined to provide further details and commented on the entire discussions with the government. Acacia CEO Brad Gordon commented last week that the company would engage with the relevant authorities during the current quarter.

The discussion centering "with a view to finding a route forward that is both beneficial and practical for all stakeholders," Mr Gordon said.

Reports show that the deadline for Acacia to list its three individual operating mines on the Dar es Salaam Stock exchange has been brought forward to August 23 this year. Currently Acacia is 64 per cent owned by Canadian mining group Barrick, with the rest held by international investors.

Acacia, a London-listed mining firm, has three mines Buzwagi, North Mara and Bulyanhuluand is cross-listed to Dar es Salaam Stock Exchange form London Stock Exchange. Acacia is one of the largest gold producers in Africa and a portfolio of exploration projects across Africa.

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