The Kenyan government has delayed a mining license to London-based Red Rock Resources which plans to produce gold in Migori, western Kenya, forcing the multinational to retain a $6.91 million provision it had made for its troubled local operations.
The company, which is eyeing a 243 square-kilometer site with deposits of the precious metal valued at more than $1.8 billion, has been waiting for the license since 2018.
The company in 2018, settled a court case with the Kenyan government which had terminated its mining license in May 2015.
Red Rock is yet to disclose reasons for the cancellation.
The cancelled permits are SPL122 and SPL202, issued under the former Mining Act.