Tanzania has revoked a retention license 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 license for the Kabanga nickel project in northwestern Tanzania was among 11 retention licences canceled by the government under the Mining (Mineral Rights) Regulations of 2018, which were approved in January.
A retention license is granted to holders of a prospecting license 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 canceled,” 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 license was due to expire in May 2019.