AFRICAN BARRICK GOLD PLC: Renewal of North Mara Special Mining Licences
26 November 2012
African Barrick Gold plc (the "Company" or "ABG")
Renewal of North Mara Special Mining Licences
* Renewed on existing terms and conditions and for a 15 year period
* Important milestone for the long-term future of the operation
ABG is pleased to announce it has received the renewals of the special mining
licences at North Mara. The renewals of SML 17/96 and SML 18/96 (together, the
"North Mara SMLs") are on the same terms and conditions as the previous
licences and are both for a period of 15 years. The original North Mara SMLs
were issued in February 2000 and had expired in September 2011, since which
time 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 2 million ounces of gold and has a further 3.5 million ounces of
gold remaining in reserves. SML 17/96 has been enlarged twice and now covers an
area of 31.3 square kilometres and includes both the Gokona and Nyabigena pits.
SML 18/96 has been enlarged six times and now covers an area of 10.5 square
kilometres and includes the Nyabirama pit.
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
For further information contact:
African Barrick Gold plc+44 (0)207 129 7150
Andrew Wray, Head of Corporate Development & Investor Relations
Giles Blackham, Investor Relations Manager
RLM Finsbury+44 (0)207 251 3801
ABG is Tanzania's largest gold producer and one of the five largest gold
producers in Africa. We have four producing mines, all located in northwest
Tanzania, and several exploration projects at various stages of development. We
have a high-quality asset base, solid growth opportunities and a clear
The key pillars to our strategy are:
* driving operating efficiencies to optimise production from our existing
* growing through near mine expansion and development of advanced-stage
* organic greenfield growth and acquisitions in Africa.
Maintaining our licence to operate through acting responsibly in relation to
our people, the environment and the communities in which we operate is central
to achieving our objectives.
ABG is a UK public company with its headquarters in London. We are listed on
the Main Market of the London Stock Exchange under the symbol ABG and have a
secondary listing on the Dar es Salaam Stock Exchange. Historically and prior
to our initial public offering (IPO), our operations comprised the Tanzanian
gold mining business of Barrick Gold Corporation (Barrick), our majority
shareholder. ABG reports in US dollars in accordance with IFRS as adopted by
the European Union, unless otherwise stated in this announcement.
This announcement is for information purposes only and does not constitute an
invitation or offer to underwrite, subscribe for or otherwise acquire or
dispose of any securities of ABG in any jurisdiction.
This announcement includes "forward-looking statements" that express or imply
expectations of future events or results. Forward-looking statements are
statements that are not historical facts. These statements include, without
limitation, financial projections and estimates and their underlying
assumptions, statements regarding plans, objectives and expectations with
respect to future production, operations, costs, products and services, and
statements regarding future performance. Forward-looking statements are
generally identified by the words "plans," "expects," "anticipates,"
"believes," "intends," "estimates" and other similar expressions.
All forward-looking statements involve a number of risks, uncertainties and
other factors, many of which are beyond the control of ABG, which could cause
actual results and developments to differ materially from those expressed in,
or implied by, the forward-looking statements. Factors that could cause or
contribute to differences between the actual results, performance and
achievements of ABG include, but are not limited to, changes or developments in
political, economic or business conditions or national or local legislation in
countries in which ABG conducts or may in the future conduct business,
future industry trends, competition, fluctuations in the spot and forward price
of gold or certain other commodity prices, changes in regulation, currency
fluctuations (including the US dollar, South African rand, Kenyan shilling and
Tanzanian shilling exchange rates), ABG's ability to successfully integrate
this and future acquisitions, ABG's ability to recover its reserves or develop
new reserves, including its ability to convert its resources into reserves and
its mineral potential into resources or reserves, and successfully and in a
timely manner process its mineral reserves, risk of trespass, theft and
vandalism, changes in its business strategy as well as risks and hazards
associated with the business of mineral exploration, development, mining and
production. Although ABG's management believes that the expectations reflected
in such forward-looking statements are reasonable, ABG cannot give assurances
that such statements will prove to be correct. Accordingly, investors should
not place reliance on forward looking statements in this announcement. Any
forward-looking statements in this announcement only reflect information
available at the time of preparation. Subject to the requirements of the
Disclosure and Transparency Rules and the Listing Rules or applicable law, ABG
explicitly disclaims any obligation or undertaking publicly to release the
result of any revisions to any forward-looking statements in this announcement
that may occur due to any change in ABG's expectations or to reflect events or
circumstances after the date of this announcement. Nothing in this announcement
should be construed as a profit forecast or estimate.
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