African Barrick Gold welcomes renewal of North Mara licences

published 26 November 2012

Mining group African Barrick Gold has announced the renewal of its special mining licences (SML) at the North Mara mine for a period of 15 years, an important step in the company's long-term future.

The licences were originally granted in February 200, and experired in September last year, although the mine has continued to operate on the same basis due to the rollover provisions contained in the Tanzanian Mining Act.

Since the issue of the original North Mara SMLs twelve years ago, the mine has produced over two million ounces of gold and has a further 3.5m ounces of gold remaining in reserves. The 17/96 SML has been enlarged twice and now covers an area of 31.3 square kilometres and includes both the Gokona and Nyabigena pits. The 18/96 SML has been enlarged six times and now covers an area of 10.5 square kilometres and includes the Nyabirama pit.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Commenting on the renewal, CEO of ABG, Greg Hawkins said: "The renewal of the North Mara SMLs represents an important step in providing a stable platform for future investment into one of our core assets. We have worked closely with the government over the past 18 months in order to achieve the first renewal of a special mining licence in Tanzania under the Mining Act 2010, and this highlights their focus on ensuring there is a positive investment climate for Tanzania."

The share price fell 1.5% to 394p by 09:20.