As the Tanzanian Government officially instates its new mining commission, Magnis Resources (ASX: MNS) confirmed its licence to mine graphite at its Nachu project in Tanzania is unaffected by the country’s July 2017 ban on unprocessed mineral concentrate exports because the company will be exporting value-added products.
The company today clarified a previous statement it had issued on the agreement it had reached with the Tanzanian Government to progress the company’s Nachu graphite project development.
As profiled in Small Caps’ guide to graphite stocks on the ASX, Nachu has an initial 15-year life producing 240,000 tonnes per annum of graphite concentrate.
The Sydney-based company said its Uranex Tanzania subsidiary and its future mining operations were in the same situation as other companies operating in the east African country.
“Negotiations with the government need to be finalised following the initial July 2017 legislation changes and once the mining commission is in full operation,” Magnis investor relations director Travis Peluso said. “However, the company believes that Uranex will be able to operate successfully under the new legislation where the government will have a free carried interest in the future Nachu mine.”
Mr Peluso affirmed the company’s 100%-owned subsidiary Magnis Technologies Tanzania would operate with the Special Economic Zone (SEZ) licence while its Uranex subsidiary would undertake mining operations.
Last month, the company organised for Uranex to mine and sell graphite ore directly to Magnis Technologies Tanzania, rather than graphite concentrate.
The development followed news the company had taken a 10% stake in US-based lithium-ion battery technology group Charge CCCV.
Today Mr Peluso said the company would “continue to focus on what it views as the best options for the development of Nachu along with the battery manufacturing plants”.
Mr Peluso revealed the company was currently evaluating infrastructure financing proposals while it assessed project-development funding options.
“The company has received a number of expressions of interest from large financial institutions for the funding of infrastructure to support the project,” he said.
Mr Peluso said the company believed its clarifications were required because of “false misinformation or allegations” about the company and its management in some forums.
“We assure shareholders that the board and management have acted honestly and professionally in all aspects of the development of Nachu,” he said.
Magnis Resources securities were up 3.8% to A$0.41 by close of trade.