Acadia, one of the foreign-owned mining companies that Tanzania’s new policy changes have adversely affected, will be retrenching part of its workforce next month.
In a report published on its website on Monday, The Citizen reported that Acadia said it faced no option but retrench staff at its subsidiary, Pangea Minerals Limited (PML), in order to cut operating costs.
“Extraction operations in the mine will come to an end by 2020. The new cut will include employees in sections that are no longer operating,” said PML general director, Benedict Busungu.
It is a second retrenchment that Acacia, whose majority shareholder is Barrick Gold, has carried out within a year. According to The Citizen, in September 15, 2017, the company reduced its employee complement by 2,000. However, this year it is yet to assess exact number to be affected.
Acacia said, mainly, the government’s ban on the exportation of copper and gold mineral concentrates had affected its performance.
The company is yet to settle the staggering tax bill that the Tanzanian government claims it owes .
Sourced from The Citizen