DAR ES SALAAM: Tanzania has revoked a retention licence for an undeveloped nickel project jointly owned by Barrick Gold Corp and London-listed miner Glencore Plc as part of enforcement of a new mining regime.
The licence for the Kabanga nickel project in northwestern Tanzania was among 11 retention licences cancelled by the government under the Mining (Mineral Rights) Regulations of 2018, which were approved in January.
A retention licence is granted to holders of a prospecting licence after they identify a mineral deposit within the prospecting area which is potentially of commercial significance but cannot be immediately developed due to technical constraints, adverse market conditions or other economic factors.
“The Mining Commission would like to inform all owners of retention licences that the licences have been cancelled,” commissions chairman Idris Kikula said in a statement.
Barrick Gold Corp and Glencore Plc which own the 50-50 joint venture project were not immediately available for comment. Their licence was due to expire in May 2019.
Other retention licences cancelled by the mining commission target other nickel, gold, silver, copper and rare earth exploration companies.
Tanzania, Africa’s fourth-largest gold producer, is seeking a bigger slice of the pie from its vast mineral resources by overhauling the fiscal and regulatory regime of its mining sector.
Retention licences were previously granted for a period not exceeding five years, which was renewable.
Tanzanian President John Magufuli appointed the chairman and commissioners for the country’s new mining commission last month, paving the way for tighter regulation of the mining sector.
Magufuli sent shock-waves through the mining industry with a series of actions since his election in late 2015.
In July last year, he suspended the issuance of all new mining licences until the new mining commission was in place. — Reuters
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