BHP Billiton Ltd (ASX:BHP) has received confirmation that its Mumbwa prospecting licence will not be cancelled.

The miner was informed on 1 September that the Zambian Ministry of Mines and Minerals had planned to cancel the licence because of an alleged military security zone in the area.

BHP is a joint venture partner with Blackthorn Resources, and following consultation, BHP appealed the notice, holding meetings to re-establish the security of the project.

Both miners have now received notice the ministry’s decision has been reversed, confirming the previous terms of the licence.

Drilling and other operations did not stop and are now continuing as usual.

Blackthorn managing director Scott Lowe says this issue was of serious concern, however by working with BHP and the support of the Zambian Ministry of Mines and Minerals, there has been a satisfactory outcome.

For the year to 30 June 2009, BHP reported a $7.24 billion profit.