Australian miners halt trading on Tanzanian law changes

Australian miners halt trading on Tanzanian law changes
Image Source:Kibaran Resources

By Esmarie Swanepoel

A slew of Australian mining companies have suspended share trading on the ASX amid legislative changes in the Tanzanian mining sector.

The Tanzanian Parliament earlier this week passed two laws allowing the government to force mining companies to renegotiate contracts, with a third Bill expected to be passed later this week. The Bills cover natural resource contracts and sovereignty and would amend existing laws to allow the government to renegotiate or dissolve contracts with multinational companies.

The passing of the Bills have resulted in a number of Australian miners operating in Tanzania halting share trading while they considered the impact of the legislative changes on their operations.

The companies affected include Volt Resources, Strandline Resources, Magnis Resources, Graphex Mining, Black Rock Mining and OreCorp.

ASX-listed Kibaran Resources said on Wednesday that the majority of the new provisions were not expected to impact the company or its Epanko graphite project, as they appear to be targeted at mining operations for metals, precious metals, metal concentrates and gemstones.

“In terms of the specific provision of the new legislation, the requirements relating to the export of raw materials, storageand valuation of materials for further processing, beneficiation of metals and mineral concentrates and increase in the metallic mineral royalty rates do not impact Kibaran because the Epanko graphite project involves the production and sale of an industrial mineral graphite as a final product in Tanzania,” the company said on Wednesday.

A recent feasibility study estimated that the $88.9-million Epanko project could deliver some 60 000 t/y of graphite product.

Graphite developer Walkabout Resources has previously said that the legislative changes would also not affect the company’s Lindi Jumbo graphite project.

Walkabout is currently developing a 40 000 t/y graphite-in-concentrate mine at the Lindi Jumbo project, which is expected to operate for over 20 years. The project was recently granted environmental approvals and Walkabout is looking at funding options for the project.

Source: Mining Weekly

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