26 June 2019 Acacia Mining Plc LSE:ACA
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26 June 2019 Acacia Mining plc LSE:ACA (“Acacia” or the “Company”) Response to Forbidden Stories Articles Last week, the Guardian in London and the international Forbidden Stories collective published a number of articles on Acacia’s North Mara mine (“the Mine”) in which they repeated allegations about the Mine relating to human rights and the environment. Acacia was asked to comment for some of the articles and did so, refuting several claims and explaining the factual background and context with respect to others. As Acacia’s comments were only partially reflected in the articles, and the articles were misleading in their portrayal of the Mine, the company would like to clarify the current situation at North Mara in relation to a number of these allegations. Security and Human Rights The articles concerning the security and human rights situation at North Mara repeat historical allegations about incidents involving the Tanzanian police and the Mine’s security personnel and their engagement with illegal trespassers at the Mine. The articles focus primarily on events in 2011, but also discuss events of 20 years ago. They portray the past as the present, and present allegations as substantiated facts. Largely ignored is the current situation at the Mine, where there are fewer illegal intrusions, few interactions between police and the Mine’s security personnel on the one hand and intruders on the other, few new allegations of excessive force being employed, and a relationship between the Mine and its local communities which, while complex and challenging, like that of any Mine-community relationship, is largely positive and recognised by the community as improving. Since 2014, the statistics speak for themselves in terms of the effectiveness of the Mine’s efforts in the area of security and human rights. Based on the monthly averages, the number of illegal incursions into the (higher risk) active mining areas at North Mara decreased by 99% in 2018, compared with 2014. This in turn, along with increased training by the Tanzanian police of their officers in the use of graduated and proportionate force when justified, and better equipment, has led to very significant reductions both in violent confrontations and in fatalities involving illegal trespassers. In the four years between 2014 and 2017, six people sadly lost their lives in incidents involving the police and illegal trespassers. There were no such fatalities in 2015 and 2018. Clearly, any loss of life is unacceptable, and the Mine is continuing to review its security and safety arrangements to seek to further reduce the risk of such incidents occurring, and towards eliminating them altogether. But it is not accurate to portray the Mine as a place of ongoing violent confrontation and death, as the Guardian did in its articles, picking up and repeating the exaggerated and unfounded accusations and advocacy of a group of activist anti-mining NGOs. 1 LSE:ACA www.acaciamining.com Acacia and the Mine have responded in detail over a number of years to a series of misleading and exaggerated claims by two NGOs, MiningWatch Canada and Rights and Accountability in Development (RAID), regarding the security situation at the mine site including the number of fatalities that have allegedly occurred as a result of violence involving mine security or the police. See copies at the Acacia website. The articles ignore that the Mine has taken many steps and put into place processes to seek to meet its commitments to support respect for human rights, in what is a complex security and human rights environment, including systems to implement the Mine’s commitment to meet the Voluntary Principles on Security and Human Rights (VPs) and the United Nations Guiding Principles on Business and Human Rights. In addition to the Mine’s ongoing security and human rights risk assessments, an independent consulting firm has been engaged to assess and assist in improving the Mine’s compliance with the VPs every two years. The Mine has continued to seek to work with the Tanzanian Police Force (TPF) to encourage and promote respect for human rights and accountability for human rights violations. The Mine has entered into successive Memoranda of Understanding (MoU) with the TPF, as is recommended by the VPs Initiative and the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict- Affected and High-Risk Areas. These MoUs have set out the Mine’s expectations regarding the TPF’s conduct, including in relation to the use of force and respect for human rights. Under the MoU and otherwise, the Mine sponsors human rights training for the TPF, requires that TPF officers who fail this training are not provided with support under the MoU in their deployment to the area to seek to maintain law and order, refers all incidents that raise human rights concerns to the authorities, and encourages accountability and access to remedies for alleged human rights violations by members of the TPF. Environmental Allegations Acacia would like to make it clear that its North Mara mine has a comprehensive sampling programme in place in and around its licence areas and in relation to any water discharge. Any water discharged from the operation complies with the applicable regulatory requirements and is monitored regularly by the responsible authority. Concerning historical allegations of human and livestock deaths in the area, in 2016 the Mine hosted a visit by the Deputy Minister for Environment to conduct additional water samples and these allegations have been investigated by the North Mara mine, in addition to the National Environment Management Council (NEMC) and a Parliamentary Committee, and there was no evidence found to support these allegations. Concerning the recent fine for alleged pollution from North Mara’s tailings storage facility (TSF), the Mine continues to request the Government of Tanzania (GoT) to provide the Mine with the sampling data, results, analyses and any investigation or other reports from the Tanzanian environmental regulator NEMC that were the bases for the fine. Meanwhile, the Mine’s technical team continues to work with the GoT to seek to address the GoT’s stated concerns regarding seepage from the TSF, which was originally constructed in accordance with Government and international standards and which has continued to be regularly monitored by Government regulators throughout its operation as well as subject to annual independent verification audits and inspections. 2 LSE:ACA www.acaciamining.com Harassment of Journalists Acacia and the Mine were concerned to read for the first time the allegations regarding incidents of intimidation, harassment and threats against journalists in relation to media coverage about the Mine. The Company and the Mine would like to make it clear that previously we have not been aware of those or other such allegations, and could never support any actions which infringed human rights or breached applicable local or international laws. Both the Mine and Acacia seek to engage actively and openly with the media in Tanzania and internationally, while the Mine goes to considerable effort to engage with members of its local communities and promote community cohesion. Social Investment at North Mara Besides the mining operations themselves, North Mara and Acacia are committed to supporting efforts towards socioeconomic advancement in Tanzania and in the locality of the Mine, including the realisation of the Government’s Development Vision 2025. Acacia’s Sustainable Communities programme aims to contribute to the development of “sustainable communities” around its mines, including North Mara, in order that they enjoy a thriving local economy, have access to social infrastructure and live in a safe and inclusive environment achieved through strong and transparent relationships with our businesses. The strategy focuses on education, health, water, roads, energy, and various economic development activities and is aligned with the United Nations’ Sustainable Development Goals. Since 2012 North Mara has invested over US$1.6 million in the renovation and upgrade of three hospitals and clinics and four medical dispensaries in the community. In 2018 the mine completed the construction of the Nyamwaga Health Centre which boasts critical medical infrastructure including a surgical theatre, pharmacy and a maternity ward. Since its renovation, at a cost of US$600,000, the health centre can treat 60% more patients thanks to the wider availability of services. Meanwhile, in the education sector, over the last seven years North Mara has invested more than US$12 million in the construction and renovation of primary and secondary schools in the local community. Today, among a range of projects, the mine continues to improve service delivery through the ongoing training of local teachers and provision of a number of medical programmes to support healthcare in the community. ENQUIRIES For further information, please visit our website: www.acaciamining.com or contact: Acacia Mining plc +44 (0) 20 7129 7150 Sally Marshak, Head of Investor Relations and Communications Camarco +44 (0) 20 3757 4980 Gordon Poole / Nick Hennis 3 LSE:ACA www.acaciamining.com About ACACIA Acacia Mining plc (LSE:ACA) is the UK holding company of the Acacia Group, Tanzania’s largest gold miner and one of the largest producers of gold in Africa. The Acacia Group has three mines, all located in north-west Tanzania: Bulyanhulu, which is owned and operated by Bulyanhulu Gold Mine Limited, Buzwagi, which is owned and operated by Pangea Minerals Limited and North Mara, which is owned and operated by North Mara Gold Mine Limited. The Acacia Group also has a portfolio of exploration projects in Kenya, Burkina Faso and Mali. Acacia Mining plc is a UK public company headquartered in London. It is listed on the Main Market of the London Stock Exchange with a secondary listing on the Dar es Salaam Stock Exchange.