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Barrick faces new Tanzania twist

Barrick Gold (TSX: ABX) is reportedly confident of receiving a prospecting licence for its Kabanga nickel joint venture with Glencore in Tanzania.
Barrick faces new Tanzania twist Barrick faces new Tanzania twist Barrick faces new Tanzania twist Barrick faces new Tanzania twist Barrick faces new Tanzania twist

Mining Commission makes moves

Staff reporter

The Kabanga licence had been due to expire in 2019 and was one of 11 retention licences cancelled by the Mining Commission as part of the enforcement of the country's new mining regime, Reuters reported on the weekend.

Tanzanian president John Magufuli had appointed commissioners to the new body last month.

Commission chairman Professor Idris Kikula said former retention licence holders should reapply but there was no guarantee of securing the licences, local media reported on Saturday.

Kikula reportedly added that the commission would start issuing new mining licences this week.

Barrick spokesman Andy Lloyd told Bloomberg yesterday the joint venture partners expected to receive the licence for Kabanga.

"Glencore and Barrick expect to receive a prospecting licence and look forward to continuing the constructive relationship that exists with both the government of Tanzania, and the communities in the area of the project," he said.

Barrick is also hoping to reach agreement by mid-year with the Tanzanian government on behalf of its majority-owned Acacia Mining.

Barrick last year proposed giving the government a 16% free-carried interest in Acacia's three Tanzanian operations, getting Acacia to pay US$300 million as part of an effort to resolve a $190 billion tax bill and was in talks with hopes to lift the country's concentrate export ban.

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