Acacia Mining in talks with Chinese investors over possible asset sale

Acacia Mining has begun talks about potentially selling a stake in some or all of its Tanzanian gold mining operations.

The FTSE 250 company said late on Friday that it had received "expressions of potential interest from Chinese counter-parties" and is "engaging with a small number of potential investors".

Acacia stressed is "has not received an approach from any third parties to acquire shares in the company" and said talks were at a "very early" stage, with no certainty that an agreement will be reached.

Canadian-listed Barrick Gold, which owns 63% of Acacia, has been in negotiations with the government of Tanzania since last summer after Acacia was accused of under-declaring its gold shipments and "mining illegally", leading to an export ban being placed on its gold/copper concentrate exports in March. Tanzania, after hitting Acacia with an eye-popping $190bn bill for alleged unpaid tax, has since imposed new laws to take a greater royalties and up to 50% share in the mines.

Acacia said it supported the negotiating process and hopes to soon receive a detailed proposal for review.

"Acacia remains committed to shareholder value and evaluates all opportunities against strict strategic and financial criteria and any transaction will be pursued only if it is determined by Acacia’s Board to be in the best interests of all shareholders."

Earlier this week, Acacia reported a massive £710m loss after writing down the value of its assets due to the government dispute, with group revenues falling 29% as gold production dropped 27%.

Tanzania's mining authorities banned the export of gold-copper concentrate last March. This ban meant the company was unable to export and sell 185,800 ounces of produced gold during the year.