ASX-listed Magnis Resources has reached an agreement with the Government of Tanzania on amendments to the Special Economic Zone licence, granted to Magnis Technologies Tanzania, a 100% owned subsidiary of Magnis Resources.
The Special Economic Zone (SEZ) under the jurisdiction of the Department of Industry, Trade and Investment, governs the operation of the graphite processing plant and is not subject to the changes in the mining legislation promulgated last year.
The amendments are significant and a major value catalyst for Magnis Resources and underpins the development of its Nachu graphite project which includes the processing facility.
Following the introduction of new mining sector legislation in Tanzania during the second half of 2017, Magnis Resources has continued to progress discussions with the Government of Tanzania (GOT) regarding the development of the mining and processing
The GOT has expressed its desire to see the implementation of large projects that will add significant value to the country’s economy and development.
Those discussions led to Magnis Resources submitting a proposal outlining that the entire Nachu processing plant will operate under Magnis Technologies Tanzania (MTT) in the SEZ licence area, with the products from the SEZ continuing to be advanced graphite
products that can be made using Magnis Resources’ proprietary technology.
Details of the new agreement
Magnis Resources has two subsidiaries in Tanzania – MTT and Uranex Tanzania.
MTT will own and operate 100% of the company’s processing plant at the Nachu graphite project under the laws applicable to the SEZ under the Export Processing Zone Authority (EPZA) with the objective of promoting investment in Tanzania.
MTT will initially produce refined Jumbo and Super Jumbo Flake products and spheroidal graphite products for the lithium-ion battery market.
Uranex will operate under the laws and regulations applicable to the country’s mining industry under the Ministry of Minerals.