Peak Resources

After being recommended for grant by the Mining Commission the cabinet approval process for the granting of a special mining licence to Peak Resources Ngualla rare earths project in Tanzania in underway.

Tanzania – As part of the process both pending the special mining licence application projects; Peak’s Ngualla and the Orecorp-owned Nyanzaga project were visited by a delegation of government officials and experts during October.

The special delegation spent four days at the Ngualla site visiting the licence area, exploration camp and meeting with the local community. The visit was an opportunity for the company to highlight the positive impact the project will have, not only on the local community but to Tanzania as a whole.

The mine when operational will be the largest employer in the area and will contribute a considerable amount to the nations mining related gross domestic product and government revenues.

The initial capital investment will also include a substantial upgrade to the access of the Ngualla area which will open up a large parcel of agricultural land to both domestic and international markets.

The meeting with the local community followed a tour of some of the many community projects including school buildings, teacher’s accommodation and medical facilities that Peak Resources has undertaken since it started exploration in the area.

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The appreciation for the community projects and the desire to see the project commence was evidenced by the unanimous support expressed by the local community to the delegation.

Peak Resources believes that the visit is a positive move forward towards the issuing of the special mining licence with the delegation left satisfied that their queries had been answered in an open and transparent manner.

Agreement between Barrick and the Tanzanian government

The move to gaining Cabinet approval for the special mining licence has occurred during a time when there has been a number of recent positive developments in the Tanzanian mining sector.

Not least of these is the agreement reached between Barrick Gold Corporation (Barrick) and the Government of Tanzania concluding a long term dispute that has had a large impact on the entire mining industry in the country.

READ MORE: Tanzania government and Barrick bury the hatchet

The agreement, as published by Barrick, includes a number of positive moves by the government that clarifies key areas in the 2017 legislation that were uncertain and is expected to facilitate easier access to international financing for Tanzanian mining projects.

The key areas of the agreement from Peak’s perspective include;

  • The government of Tanzania will take no more than 50% of the economic benefits from the mine, which includes all free carried interest dividends, taxes, royalties, government fees and other fiscal levies.
  • Dispute resolution will include access to UNCITRAL International Arbitration
  • The company will be allowed to open and maintain bank accounts outside of Tanzania

Commenting at a press conference on 20 October 2019 about the agreement reached with Barrick, Professor Palamagamba Kabudi the Foreign Affairs and East African Cooperation Minister and the head of the government’s team in the Barrick negotiations said “[The agreement] will make our new partnership an example to other mining ventures who are investing in Tanzania and who want to invest in Tanzania.”

“We are encouraged by the recent engagement by the Tanzanian government with Pea Resources, and also more broadly the positive events in the Tanzanian mining sector as evidenced by the conclusion of the Barrick negotiations. I am optimistic that after a couple of difficult years, Tanzanian can once again become one of the best mining regions in Africa,” says Peak Resources CEO Rocky Smith.