Magnis awarded special licence for Tanzanian project
PERTH (miningweekly.com) – ASX-listed junior Magnis Resources has been granted a special mining licence for its Nachu graphite project, in Tanzania, which will allow the company to proceed with the finalisation of funding arrangements for the project's development.
“Today is a landmark day for Magnis, receiving a special licence for the Nachu graphite project, and is a significant step towards our goal of production. Today’s announcement also allows the company to finalise project funding,” said chairperson Frank Poullas.
A special licence was considered superior to a mining licence and was awarded to projects with an investment greater than $100-million. The special licence allowed for a larger area to be approved than under a regular mining licence, which would be restricted to an area of 10 km2.
Magnis had been granted a project area of some 30 km2.
The special licence also granted tenure for up to 25 years, while a mining licence only allowed for a ten-year tenure.
The special licence was also supplemented by a mineral development agreement (MDA), which is negotiated with the government and could encompass government participation, fiscal stability for the life of the project, dispute resolution mechanisms and environmental conditions.
While the MDA was viewed as an important component of any development, it was not required before the start of mining activities.
“We look forward to concluding our MDA with the Ministry in the near future, as the MDA has been taken to the final stages of negotiations,” said Poullas.
The Nachu project was estimated to host a mineral resource of 156-million tonnes, grading 5.2% graphitic carbon, to contain over eight-million tonnes of contained graphite.
Some 66% of this resource was classified as measured and indicated.
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