Kibaran said it had received a letter stating the commission would renew the licence when it expired for a further 10 years, provided Section 53 requirements of its mining act were fulfilled.

The company said the guarantee letter was a major requirement of lenders.

"This letter of guarantee for its renewal is an important demonstration of government support for the project and formed part of broader discussions that are currently taking place with the commission," Kibaran said.

It said the current discussions were to finalise the remaining requirements of the lenders so Epanko's construction could proceed as soon as possible.

At a presentation in Perth last week, the company said it had German and Australian project financing only awaiting Tanzanian go...