Tanzania – ASX-listed junior Magnis Resources has been awarded a special mining licence (SML) for the Nachu graphite project in Tanzania, which will allow the company to proceed with finalising funding arrangements for the further development of the project.
“Receiving a SML for the Nachu graphite project is a significant step towards our goal of production and allows us to finalise project funding,” Magnis chairman Frank Poullas said.
The SML, which has been granted to Uranex Tanzania, the 100% owned Tanzanian subsidiary of Magnis, is a superior licence to a mining licence as it encompasses projects with an investment over US$100 million.
To receive the grant of the SML, the Company’s application was initially assessed by the Ministry of Energy and Minerals (MEM) and then recommended to the Mining Advisory Board (MAB) for its endorsement.
The SML was supplemented with a Mineral Development Agreement (MDA). The MDA, which is negotiated with the government, can encompass government participation, fiscal stability for the life of the project, dispute resolution mechanisms and environmental conditions.
While a MDA is viewed as an important component of the development, it is not a requirement before the commencement 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 advanced final stages of negotiations,” said Poullas.
The company applied for the SML in preference to a standard mining licence as a SML allows for a larger area to be approved than a mining licence. A mining licence is restricted to an area of 10 km2, while Magnis has been granted an area of approximately 30 km2.
Additionally, a SML grants tenure for the period of the development or for a maximum period of 25 years, while a mining licence only allows for a 10 year period.
The licence, SML 550/2015, was granted to Magnis on 7 September 2015 by the MEM of Tanzania.
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