The Government of Tanzania is working hard to achieve its goal of mining contributing 10% of the country’s GDP by 2025 according to its Tanzania Development Vision 2025 and has signed key agreements with Evolution Energy Minerals, EcoGraf and Peak Rare Earths to develop mining projects in the country
The first of these was a framework agreement and shareholders agreement signed with Evolution for the Chilalo Graphite Project. These relate to the arrangements for the ownership, development and management of the project.
Phil Hoskins, Evolution’s managing director, commented, “Completion of the agreements is a key milestone as we continue to progress towards the development of our Chilalo Project. Financiers require certainty on the operation of the Tanzanian Government’s free carried interest and the completion of these agreements provides the certainty to support further investment from Evolution and debt and equity financiers.
“Alignment with the Government on the key principles underpinning the development of Chilalo is critically important. With these agreements now in place, we look forward to working together with the Government of Tanzania to establish a commercial scale graphite mine that delivers meaningful benefits to all stakeholders.”
EcoGraf has made a similar announcement by reporting it had also signed a framework agreement with the Government of Tanzania. The diversified battery anode material company confirmed the agreement for the development and operation of the Epanko Graphite Project in the country, marking a milestone in the company’s plans to develop a new world-class operation.
A new joint venture entity, Duma TanzGraphite, has now been incorporated to develop and operate the Epanko project. EcoGraf will hold an 84% interest in the company while the Government will hold a 16% free-carried interest. In order to meet a key requirement for project financiers, a new Epanko life-of-mine special mining licence will be issued to Duma TanzaGraphite. The Tanzanian Government and EcoGraf will cooperate to secure financing for the development of Epanko.
Finally, Peak Rare Earths has announced that it has signed a binding formwork agreement with the Government in regards to the Ngualla Rare Earth Project. This sets out the basis for the Government’s agreement for the licencing, development, economic benefit sharing and the formation of a joint venture between it and the Peak for development and operation.
Mamba Minerals Corporation has been created to own and operate the Ngualla Project while Mamba Refinery Corporation has been launched to own and operate any future Tanzanian refining and downstream operations. Both entities are owned 84% by Peak with the Government holding the remaining 16% interest.
Dotto Biteko, Minister for Minerals of Tanzania, remarked, “The signing of the Ngualla Rare Earth framework agreement marks a major milestone for the Government of Tanzania and Peak Rare Earths. The project will position Tanzania as a major player in the international rare earths sector and enable us to play an important role in supporting global decarbonisation initiatives. It will also support the delivery of employment, investment in social and regional infrastructure as well as a substantial source of revenue for the government in the form of dividends, royalties and taxes.”
Russell Scrimshaw, executive chair of Peak, added, “Development of the Ngualla Project will deliver direct foreign investment of more than US$320mn into the Tanzanian economy, generate hundreds of direct and thousands of indirect jobs for Tanzanians and position Tanzania as one of the major rare earth producers outside of China. It represents an opportunity to deliver multi-generational opportunities to the people of Tanzania.”
