Glencore, Barrick expect to win Tanzanian prospecting licence

BARRICK Gold expected to be granted a prospecting licence over a nickel project in Tanzania despite having had the retention licence over the property revoked by the East African country’s government, said Reuters.

“In order to transition to the new license structure implemented in January, the project partners have applied for a Prospecting License covering the same area as the Retention License,” Barrick said in a statement. Its partner is Glencore.

Tanzania had earlier revoked a retention licence for the undeveloped nickel project jointly owned by Barrick Gold and Glencore in terms of new mining laws approved in January. The legislation also calls for mining companies to part with shares to the government on a free-carry basis, and increased royalties. In the case of Acacia Mining, the government has halted gold in concentrate exports until tax claims are settled.

In respect of Glencore and Barrick Gold, the retention licence was for the Kabanga nickel project in northwestern Tanzania. It was among 11 retention licences cancelled by the government under the Mining (Mineral Rights) Regulations of 2018.

The Glencore/Barrick Gold licence was due to expire in May 2019. Other retention licences cancelled by the mining commission target nickel, gold, silver, copper and rare earth exploration companies, said Reuters.