Acacia Mining’s Top Executives call it Quits

In a statement released by Acacia Mining (November 2, 2017) the Tanzanian gold mining company announced that both the Chief Executive Officer, Brad Gordon, and Andrew Wray, the Chief Financial Officer, have separately notified the Company of their intention to resign from their positions. The two executives will remain with the Company until the end of the year ensuring a smooth transition.

Brad Gordon will be returning to Australia for family reasons and Andrew Wray will be seeking opportunities elsewhere.

The Board has tentatively appointed Peter Geleta, currently Acacia’s Head of Organisational Effectiveness, as Interim Chief Executive Officer and Jaco Maritz, currently Acacia’s General Manager, Finance, as Chief Financial Officer from 1 January 2018.

Acacia Mining and the Tanzania Government have been in disputes this year after the government banned unprocessed mineral exports as part of a push to reap greater rewards from its natural resources. The government further demanded the company to pay an exorbitant amount of $190 billion in unpaid taxes, penalties and interests.

Last month Acacia’s parent company Barrick Gold which has a 63.9 percent stake in Acacia entered into a proposal with the Tanzanian government on settling the dispute through:

  • Forming a Tanzanian operating company to manage Bulyanhulu, Buzwagi and North Mara, and all future operations in the country. The principle of total transparency between partners will define how this company operates. For instance, the Government of Tanzania will participate in decisions related to operations, investment, planning, procurement, and marketing.
  • The company will maximize employment of Tanzanians, building local capacity at all levels of the business, from board membership to operations. It will also increase procurement of goods and services within Tanzania.
  • Economic benefits from Bulyanhulu, Buzwagi, and North Mara would be distributed on a 50/50 basis between the new operating company and the Government of Tanzania. The Government’s share of economic benefits would be delivered in the form of royalties, taxes, and a 16 percent free carry interest in the Tanzanian operations.
  • Acacia to make a payment of $300 million to the Government of Tanzania, on terms to be settled by the working group.

the proposal hasn’t yet been agreed upon and matters such as the payment of the proposed payment of $300 million will need approval by Acacia’s Board.

Commenting on the management changes, Kelvin Dushnisky, Chairman of Acacia gave his best wishes to Brad and Andrew whom he highlighted to have been ‘instrumental in the operational and financial turnaround of Acacia over the past four years.’ He further stated that “the Board will continue to provide the management team with our full support as the Company focuses on delivering against our operational targets, which remain unchanged from the Q3 results, while seeking a resolution to the situation in Tanzania.”