Acacia Mining CEO and financial head quit amid tax row

Trucks are parked at the open-pit mine of PT Freeport's Grasberg copper and gold mine complex near Timika, in the eastern region of Papua, Indonesia on September 19, 2015. (Photo: Reuters)

Acacia Mining’s top two executives have resigned in the midst of talks between its parent company and the Tanzanian government aimed at ending a long-running dispute that has hit Acacia’s operations.

Barrick Gold, the world’s biggest gold miner and 63.9 per cent owner of Acacia, struck a deal with Tanzania last month to end the dispute, part of which involved Acacia making a $300 million (Sh30.9 billion) payment. But Acacia, whose three producing gold mines are in Tanzania and was not directly involved in the talks, said last week it could not afford the payment.

The company said on Thursday Chief Executive Brad Gordon and finance chief Andrew Wray would both leave at the end of the year. It said Gordon was returning to Australia for family reasons, while Wray was pursuing other opportunities.

“The obvious conclusion would be that those two individuals feel that the situation in Tanzania is not going to get resolved sensibly or quickly,” said Peel Hunt analyst Peter Mallin-Jones. Acacia stock was down four per cent in early trade to 174 pence. Investec analysts said the exit could help smooth a deal.