The decision is in line with the government’s new mining regulations, which are intended to maximise the economic benefits offered by the country’s natural resources, reported Reuters.
Kabanga is located in north-western Tanzania and represents one of 11 projects that have had their retention licences revoked by the government under the initiative.
Tanzania mining commission chairman Idris Kikula was quoted by the news agency as saying: “The mining commission would like to inform all owners of retention licences that the licences have been cancelled.”
A retention license is awarded to companies possessing a prospecting licence after they identify a mineral deposit of commercial significance within the prospecting area but cannot proceed with development as a result of various factors, including technical constraints, adverse market conditions or other economic reasons.
The licence currently held by the JV partners is set for expiry in May next year.
Acacia Mining, which is majority-owned by Barrick, was previously faced with a tax demand notice of $190bn last year over charges of illegal mining and under-reporting of revenues.
The latest initiative forms part of a wider ongoing effort by African nations to increase their revenues from the mining sector.
The Mauritanian Government recently rejected Canadian mining firm Kinross Gold ’s application for its planned expansion at the Tasiast project earlier this month.