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ReGIonAl RoUnD-UP

Tanzanian rebirth down on paper

Black Rock was one of three ASX-listed
he Tanzanian mining sector’s rejuvena- the signing of individual agreements opens companies to have economic framework
Ttion gathered steam in December with a the path to project development. agreements ratified by Tanzanian President
flurry of licences issued for key Australian- Strandline completed a DFS on its Fun- Samia Suluhu Hassan in December. The
backed projects in the East African country. goni mineral sands project in November graphite hopeful will now focus on securing
At a signing ceremony in December, 2018 which pointed to a pre-tax NPV of project finance for Mahenge
President Samia Suluhu Hassan ratified $US48.7 million and IRR of 61%.
economic framework agreements with Managing director Luke Graham said the
OreCorp Ltd, Strandline Resources Ltd framework agreement was pivotal for the
and Black Rock Mining Ltd, paving the way company. entity, while allowing OreCorp to maintain
for the development of their respective pro- “This agreement puts us on the path to its focus on developing Nyanzaga.”
jects. establishing a world-class mineral sands For Black Rock, the agreement and SML
“Today we are participating as a key business in Tanzania, adding to our Tier-1 represent another link in the development
shareholder in mining our precious resourc- Coburn mineral sands project now under chain for its Mahenge graphite project, with
es which have an important role in the eco- construction in Western Australia,” he said. financing already started and an offtake
nomic development of our country,” Hassan The agreement will see Strandline own agreement with Korean conglomerate
said at the ceremony in Dar Es Salaam. 84% of a new JV company, Nyati Mineral POSCO in place.
A fourth company, Peak Rare Earths Sands Ltd, with the Tanzanian Government “Reaching agreement with the Tanza-
Ltd, was present at the ceremony but did acquiring a 16% non-dilutable free-carried nian Government, including free-carried
not have its framework agreement signed. interest in the JV vehicle. interest, is a watershed moment for Black
Peak chair Tony Pearson said significant Gold developer OreCorp is now in a simi- Rock,” managing director John de Vries
progress was being made in finalising the lar position. Its economic framework agree- said. “This enables the company to rapidly
agreement. ment will also see the Government take move forward to deliver a new clean source
“There is one company that was to sign the now-standard 16% free carried stake. of high-grade graphite to a growing global
today but they did not agree to the in- OreCorp will nominate five directors for market.”
country value addition and refining point, the new JV company with the Government Investors welcomed the news on all four
hence the delay in signing,” Hassan said, nominating two. companies, with each enjoying share price
referring to Peak. “However, because there The signing coincided with the granting appreciation in the weeks following the an-
have been previous discussions and agree- of a special mining licence (SML) for the nouncement.
ments on this and the timetable was already company’s 3.07 moz Nyanzaga gold pro- President Hassan’s Government spent
in place, I authorise the Ministry of Minerals ject in the country’s north. The issuing of much of 2021 working to redress investor
to finalise and sign so that the project can the SML and ratification of the framework sentiment towards Tanzania after taking
start as soon as possible.” agreement enabled OreCorp to make a fi- over from the late President John Magufuli.
Peak, which is planning on developing nal payment of $US8.05 million to Barrick Magufuli had taken a confrontational ap-
the Ngualla rare earths project in south- Gold Corp for the project. proach to foreign miners, accusing Acacia
east Tanzania, intends to produce a NdPr It also allowed the company to restruc- Mining of failing to pay $300 billion in back
concentrate in country before refining the ture its portfolio. In January, OreCorp an- taxes and royalties and suspending all min-
product at a specialised facility on Teesside nounced it would spin out its WA gold as- ing and exploration licences.
in the UK. In contrast, Hassan’s Govern- sets into a new vehicle, Solstice Minerals Hassan has adopted a more concilia-
ment has continued to insist on in-country Ltd, which will list on the ASX later this year. tory tone. Barrick is enjoying strong per-
value-addition. “With the grant of the SML for Nyanzaga, formance from the North Mara and Buly-
Tanzania aims for the mining sector to we believe the time is right to demerge our anhulu gold mines it acquired as part of its
contribute 10% of GDP by 2025, Hassan WA exploration assets and unlock the latent Acacia acquisition and in January BHP Ltd
said, adding that the current trend was en- value for our shareholders,” OreCorp man- entered the country with a $US40 million in-
couraging as mining currently accounts for aging director Matthew Yates said. “We vestment in the Kabanga nickel project (see
around 6.7% of GDP. believe Solstice will attract stronger inves- page 8-9).
For Strandline, OreCorp and Black Rock, tor attention and valuation in a standalone

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