Barrick, Glencore Expect New Nickel License Amid Tanzania Mining Law Tensions
May 14 2018 - 8:38AM
Dow Jones News
By Nicholas Bariyo
Barrick Gold Corp. (ABX.T) and Glencore PLC (GLEN.LN) say they
expect to be granted a new license for their nickel project in
Tanzania, just days after the East African nation cancelled a
retention license for the troubled project as it continues to crack
down on enforcing new mining regulations.
Company executives have held "fruitful discussions" with the
government and expect to receive a prospective license that affords
partners at least four years of tenure security, said Barrick
spokesman Andy Lloyd.
"The project partners have applied for a prospecting license
covering the same area as the retention License," Mr. Lloyd told
The Wall Street Journal. "Glencore and Barrick expect to receive a
prospecting license and look forward to continuing the constructive
relationship that exists."
The licensing issue is the latest manifestion of the tension
between investors and the Tanzanian government since President John
Magufuli began to push for a bigger national share of the country's
vast mineral wealth.
A retention license allows holders to maintain rights to
projects after confirming commercial deposits even if they aren't
ready to develop them yet. But under the new mineral rights
introduced in January, retention licenses are being phased out,
according to the country's mines ministry. A total of 11 licenses
have been cancelled so far, says Idris Kikula, head of the state
mine commission.
Barrick and Glencore, who own the 50-50 joint venture, are no
stranger to African governments increasingly adopting aggressive
stances against mining companies. Last year, Barrick's Tanzanian
unit was hit with a $190 billion tax bill, while Glencore is
currently battling a new mining code in Congo seeking to hike
cobalt taxes five-fold.
Write to Nicholas Bariyo at Nicholas.Bariyo@wsj.com
(END) Dow Jones Newswires
May 14, 2018 08:23 ET (12:23 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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