PERTH (miningweekly.com) – A number of Australian juniors operating in Tanzania have emerged from the rubble of the recent legislative changes, largely unscathed.
Several Tanzania-focused companies resumed share trading on the ASX on Friday, telling shareholders that the legislative changes passed by the Tanzanian Parliament earlier this week would not have any significant impact on operations.
Volt Resources, which is developing the Namangale graphite project, told shareholders that based on an initial review of the legislation, and external legal advice, the legal changes would not prohibit the company pursuing its plans to progress the Namangale project.
Volt is planning to develop the Stage 1 Namangale project into a 10 000 t/y to 20 000 t/y graphite processing operation, with the Stage 2 development, which will be completed in 2020, to be based on market demand.
Graphex Mining also told its shareholders that the company remained committed to developing its Chilalo graphite project.
“These changes were unexpected and we still have much to learn about their practical interpretation. We will work with the Tanzanian government to clarify the operation of the proposed legislation and make any necessary adjustments to both the prefeasibility study and the Chilalo development plan,” Graphex MD Phil Hoskins said on Friday.
“Tanzania continues to host the highest quality flake graphite in the world and given the growing global demand for expandable graphite for flame retardants, I am confident we can overcome any additional hurdles in the proposed legislation. Our success will not be dictated by the scope of these changes, but by our ability to finalise a transaction for offtake and finance that delivers value for shareholders. That remains our focus,” Hoskins said.
A prefeasibility study on the Chilalo project estimates that a capital injection of $74-million will be required to support average production of 69 000 t/y of graphite concentrate over a ten-year mine life.
ASX-listed Cradle Resources, which owns a 50% stake in the Panda Hill niobioum project, told shareholders that a significant portion of the new legislation would not affect the project, but the company noted that the Panda Hill project would be subject to the 16% government shareholding and the 1% clearing fee.
The Panda Hill definitive feasibility study (DFS) estimated that the $196-million project would start at a production rate of 1.3-million tonnes a year, ramping up to 2.6-million tonnes a year after the fourth year of production. The project is expected to have an average life-of-mine production of 5 400 t/y of contained niobium over its 30-year mine life.
Meanwhile, mineral sands developer Strandline Resources was also of the belief that the new legislation would not have a major impact on the company’s strategy, or its ability to achieve exploration and project development goals.
Strandline is currently working on a DFS for its Fungoni heavy mineral sands project, and is in a farm-in agreement with mining major Rio Tinto in the region, which would see Rio earn a 75% interest in mineral sands tenements for a total consideration of $10.75-million.
Strandline on Friday reported that the company was fully funded to complete the Fungoni DFS after completing the second tranche of a recent share placement, which delivered a total of A$5.2-million in cash.
A share of the capital raised will also go towards progressing exploration and mineral resource work at the company’s other heavy mineral sands projects, in northern Tanzania.