Australian company Black Rock Mining (ASX:BKT) recently announced that the total mineral resource of the Mahenge graphite project in southeast Tanzania has increased by 25% to 203m t.

Stephen Copulos, Chairman of Black Rock Mining, commented: “We believe this will deliver industry leading operational cash costs for a project that has already demonstrated its ability to deliver a high purity product from conventional flotation circuit process. We continue to believe we have the best graphite resource of any development stage project […]”

Black Rock Mining further notes that “in global terms, the total Mahenge mineral resource estimate is the fourth largest JORC compliant graphite mineral resource estimate in the world.

This offers significant flexibility for potential development into a multi-generation mining operation.

It has potential to be mined from multiple zones at low strip ratios, high-graded to accelerate capital payback in early years and can be scaled up in future due to the large resource size.”

Tanzania Graphite

Tanzania’s largest graphite deposits are located in the central and east southern regions of the country.

At the end of 2015, The Tanzanian Ministry of Energy and Minerals (MEM) announced that Tanzania will soon become one of the largest producers of graphite in the world, due to recent and abundant discoveries of graphite fields across the country.

These discoveries come mainly from Australia based graphite developers, Magnis Resources (ASX:MNS), Volt Resources (ASX:VRC) and Kibaran Resources (ASX:KNL).

Petra Diamonds (LSE:PDL), the mining company which partially owns and operates the Williamson diamond mine in Tanzania, has published the company’s payments to the Tanzanian government for the financial year ended 30 June 2016, showing a total of USD5.3m disbursed in taxes and royalties.

USD3.9m was paid in royalties, USD627,000 in excise duties, property rates and taxes, USD 523,000 in mining and other license fees, and USD237,000 in corporate taxes.

Williamson is Tanzania’s main diamond producing mine. It is an open pit operation based upon the 146 hectare Mwadui kimberlite pipe, which is the world’s largest economic kimberlite to have seen continuous mining.

Petra Diamonds owns 75% of Williamson and the Government of Tanzania owns 25%.

Tanzania has a corporate tax of 30%, also applicable to mining companies, a rough diamond royalty of 5% of turnover (gross value) and no rough diamond export levy.

Tanzanian based coal exploration and development company Tancoal Energy is set to increase the production capacity at the Ngaka coalfield in southwestern Tanzania.

This follows Tancoal’s discussions with the cement industry and Tanzania’s Ministry of Energy and Minerals.

Following the discussions, customers have indicated that they will place orders of approximately 60,000 tons per month in 2017 as a result of the policy restricting imports of coal to Tanzania.

Tancoal has already achieved record coal sales in October and November 2016 thanks to the new policy.

In November 2016, coal sales amounted to 35,370 tons, an increase from the reported record achieved in October of 29,767 tons.

Consequently, Tancoal will increase its production capacity to have a stockpile and ongoing production available to meet the expected level of sales in 2017.

Tancoal is 70% owned by Australian mining company Intra Energy Corporation (ASX:IEC) and 30% by the National Development Corporation (NDC) of Tanzania.

In October 2016, hinese hydropower company Sinohydro Corporation signed Memorandum of Understanding (MoU) for joint development of 270MW Ngaka coal power station.

The Ngaka power station is expected to consume up to 1.2m t of coal per year from Tancoal, which has a coal resource of 423m t.

Upon completion, the power station will provide more than 15% of Tanzania’s current electricity generation needs through a 220kV transmission system.

Ngaka Coal Project

The Ngaka Coal Project is operated by Tancoal since 2011. The Ngaka basin comprises the Mbalawala sub-basin in the south and the Mbuyura-Mkapa sub-basin to the north.

Tancoal indicates that the Ngaka basin has the potential to host up to 1b t of high quality thermal coal.

UK-based energy and mining company Edenville Energy (AIM:EDL) has recently received several technical and financial proposals for the construction of a 120–135MW power plant at the Rukwa Coal to Power Project site in south-western Tanzania.

Edenville has received proposals from major international Engineering, Procurement and Construction (EPC) groups, including China-based Runh Power.

However, Edenville has not tied itself to a particular group yet in order to draw on the knowledge and experience of different groups before finalizing the most appropriate deal.

The company also notes that differences in EPC costs between various proposals have been significant.

“Considerable cost savings have been identified which could potentially be applied to the construction and operation of the power plant and particularly, options for plant acquisition could result in a material reduction of overall project costs.

These proposals mean that the Company will be able to select the most financially viable route to construct the power plant project whilst also meeting the requirements of the Tanzanian Government,” Edenville indicates.

Edenville also notes that the Rukwa project has recently gone through extensive review by the Tanzanian authorities; the company is now awaiting further directives from senior Tanzanian government representatives on how they wish to proceed with the power development.

Rukwa Coalfields Project

At the beginning of 2016, Edenville Energy was granted with a mining license by Tanzania’s Ministry of Energy and Minerals (MEM) to develop its Rukwa coalfields project in the country’s south western region.

“Whilst the Company’s Rukwa coal resource could support a larger power plant it is currently envisaged that a plant in this range [120–135MW] will be the best option to establish power generation in the shortest possible timescale,” Edenville indicates.

Tanzania currently generates less than 1% of its total installed capacity of 1,754MW from coal-fired power plants that are fully supplied by imported coal according to the African Development Bank (AfDB).

In 2013 Tanzania imported USD1.35m of coal briquettes to supply its coal-fired power plants, mostly from Malawi, accounting for 86% of the total imported according to the Massachusetts Institute of Technology (MIT).

According to Edenville, the Rukwa Coalfields could potentially help diversify Tanzania’s energy feedstock in partnership with a power provider.

Australia-based mineral exploration company Walkabout Resources (ASX:WKT) recently announced that the high grade resource at its Lindi Graphite Project in southeastern Tanzania increased by 165%.

The Lindi high grade mineral resource increased from 11.7m tons to 29.6m tons (+165%), containing 3.25m tons of graphite.

Andrew Cunningham, Technical Director of Walkabout Resources, commented: “The exceptional increase in the size of the mineral resource as well as the substantial amount of high grade material in the measured and indicated categories will provide an excellent technical platform for the development of the project. The visually distinct, super high grade zones from surface, strongly support the company’s belief that operating costs of the project will be amongst the lowest in the graphite space.”

In October 2016, Walkabout Resources announced that it will focus on expandable and battery markets following the first set of tests on the Lindi graphite conducted by an independent German laboratory, NGS Trading and Consulting.

Allan Mulligan, Managing Director of Walkabout Resources, said: “The premium flake graphite to be produced at Lindi Jumbo is highly suited to the manufacture of expandable graphite products and graphite foil. Quality feedstock for expandable graphite is in short supply in China at the moment and will need to be sourced internationally.”

“Prices for graphite foil are as high as USD50,000 per ton and these products will soon be competing with the rapidly expanding international battery market for premium graphite feedstock. Premium Tanzanian graphite will become the supply of first choice and we intend to be a premium supplier of it. We’re currently preparing further samples for dispatch to our potential customer base in China, North Asia, USA and Europe,” he added.

Walkabout is fast tracking the exploration and development of the Lindi Jumbo Project to take advantage of forecast market conditions for flake graphite deposits.

The company holds 70% of four licenses at Lindi Jumbo with an option to acquire the remaining 30% share (currently owned by joint venture partners).

Lindi Graphite Project

The Lindi Jumbo Graphite Project is located in the emerging graphite province in southeastern Tanzania approximately 75km to the west of the coastal town of Lindi.

In 2015, Walkabout entered into a Memorandum of Understanding (MoU) for a staged purchase of 70% of four prospecting licenses (PL’s 9992/2014, 9993/2014, 9994/2014 and 9906/2014) totaling 325km2.

Walkabout indicates that Lindi Jumbo is known to be endowed with exceptionally large flake size.

Preliminary reconnaissance work has revealed substantial outcropping graphite at the site and initial test work has returned an elevated ratio of large and jumbo flakes particular to the ore.

Tanzanian based coal exploration and development company Tancoal Energy achieved record coal sales of 38,877 tons in December 2016 from its mine at the Ngaka coalfield in southwestern Tanzania.

This is a result of the new policy restricting imports of coal to Tanzania, according to the Australian mining company Intra Energy Corporation (ASX:IEC), which owns 70% of Tancoal.

Tancoal has already achieved record coal sales in October and November 2016 thanks to the new policy.

In November 2016, coal sales amounted to 35,370 tons, an increase from the reported record achieved in October of 29,767 tons.

In December 2016, Intra Energy announced that customers have indicated they will place coal orders of approximately 60,000 tons per month in 2017.

Consequently, Tancoal will increase its production capacity to have a stockpile and ongoing production available to meet that level of sales.

To achieve this, the company will mobilize new equipment, which includes one 40T excavator, one 85T excavator, four 55T dump trucks and a grader for haul road maintenance.

Additionally, forty 20T haulage trucks have been contracted to increase haulage capacity from minesite to the sales stockpile.

Tancoal was established in 2008, as a 30%-70% Joint Venture between the National Development Corporation of Tanzania (NDC) and Intra Energy (Tanzania) Limited (IETL), an 100% owned subsidiary of Intra Energy Corporation.

In October 2016, the Chinese hydropower company Sinohydro Corporation signed Memorandum of Understanding (MoU) with Intra Energy for joint development of 270MW Ngaka coal power station.

The Ngaka power station is expected to consume up to 1.2m t of coal per year from Tancoal, which has a coal resource of 423m t.

Upon completion, the power station will provide more than 15% of Tanzania’s current electricity generation needs through a 220kV transmission system.

Ngaka Coal Project

The Ngaka Coal Project is operated by Tancoal since 2011. The Ngaka basin comprises the Mbalawala sub-basin in the south and the Mbuyura-Mkapa sub-basin to the north.

Tancoal indicates that the Ngaka basin has the potential to host up to 1b t of high quality thermal coal.

Tanzania’s mining sector grew at a rate of 19.9% in Q3 2016 reaching TZS440b at constant prices, compared to TZS367b in Q3 2015 and a growth rate of 8%.

The results were included in a report recently issued by the Tanzanian National Bureau of Statistics (NBS), covering the country’s GDP performances for Q3 2016.

NBS attributes the growth to an increase in production of Tanzanite, salt, natural gas, gold, copper, silver and coal production.

Tanzanite production rose by 115%, from 1,386.18kg in Q3 2015 to 2,986.62kg in Q3 2016, while salt production went up 90%, from 22,375.4t to 42,449.24t.

Tanzania’s natural gas production reached 11,060m standard cubic feet (MMSCF) in Q3 2016, compared to 8,353 MMSCF in Q3 2015 (+32%).

During the same period, Tanzania’s gold production rose by 12% from 10,315.26kg to 11,592.51kg, while silver production went up 18%, from 3,663.6kg to 4,334.34kg.

Tanzania’s copper production increased by 20% to 3.5m t in Q3 2016, compared to 2.9m t in Q3 2015, while coal production rose by 10%, from 61,629t to 68,302.4t.

Tanzania Mining

Mining in Tanzania includes metals (gold, iron ore, nickel, copper, cobalt, silver), industrial minerals (diamond, tanzanite, ruby, garnet, limestone, soda ash, gypsum, salt, phosphate, gravel, sand, dimension stones and lately graphite), and fuel minerals (coal, uranium).

Mining and quarrying activities in Tanzania contributed about 4% to its GDP in 2015 with nearly TZS3.7t and accounted for 1.1% of total employment.

According to Tanzania’s Five Year Development Plan (FYDP) 2016/17–2020/21, the mining sector deliverables for 2020 and 2025 respectively are growth of 5.3% and 4.5%, % of GDP of 3.2% and 4.6%, and % of employment of 19% and 4.5%.

Australia-based mineral exploration company Walkabout Resources (ASX:WKT) estimates that the annual production target of its Lindi Jumbo Graphite Project in southeastern Tanzania is between 25,000t and 40,000t of graphite concentrate.

The projection is based on the results of a recently conducted scoping study for a proposed open pit mine and graphite processing plant at the Lindi project.

The study shows that the mine production rate is between 150,000t per annum for the 25,000 option and 250,000t for the 40,000 option.

The operating cost per ton in concentrate is estimated at USD290 to USD350, which is the second lowest amongst peer group and lowest in Tanzania.

Moreover, the study indicates that the project is economically viable even at current “10 year low” prices.

Walkabout Resources is currently in discussion with various parties regarding potential off-take deals or funding opportunities for the project.

“The Company believes that the highly robust economics, relative efficient capital intensity, premium products produced, and project size and approach will all facilitate successful fund raising for the project,” Walkabout notes.

Lindi Graphite Project

The Lindi Jumbo Graphite Project is located in the emerging graphite province in southeastern Tanzania approximately 75km to the west of the coastal town of Lindi.

In 2015, Walkabout entered into a Memorandum of Understanding (MoU) for a staged purchase of 70% of four prospecting licenses (PL’s 9992/2014, 9993/2014, 9994/2014 and 9906/2014) totaling 325km2.

Currently, the company holds 70% of four licenses at Lindi Jumbo with an option to acquire the remaining 30% share (currently owned by joint venture partners).

In December 2016, Walkabout announced that the Lindi high grade mineral resource increased from 11.7m tons to 29.6m tons (+165%), containing 3.25m tons of graphite.

In October 2016, the company announced that it will focus on expandable and battery markets following the first set of tests on the Lindi graphite conducted by an independent German laboratory, NGS Trading and Consulting.

Gold mining company Acacia Mining (LON:ACA, DSE:ACA) announced that gold production from its operating mines in northwestern Tanzania rose by 13%, from 731,912 ounces (oz) in 2015 to 829,705oz in 2016.

This was indicated in Acacia’s recently published production results for Q4 2016; the results also show that gold production in 2016 is 5% above the original guidance of 750,000-780,000oz for that year.

Acacia notes that the increase in production was mainly driven by a record production year at the North Mara gold mine and the highest production year at the Bulyanhulu mine since 2006.

Gold production at North Mara rose by 32%, from 287,188oz in 2015 to 378,443oz in 2016.

“This was as a result of 25% higher head grade driven by the higher contribution from the Gokona underground mine and a 4% improvement in recoveries,” Acacia explains.

Gold production at Bulyanhulu rose by 6%, from 273,552oz in 2015 to 289,432oz in 2016. Acacia notes that this was mainly driven by an 8% increase in run-of-mine head grade as underground mining grades improved, and a 3% increase in recovery.

Gold production at Buzwagi, Acacia’s third mine in Tanzania, decreased by 5% to 161,830oz in 2016 from 171,172oz in 2015.

The decrease was due to a 14% decrease in grade as a result of mining the cut back with ore primarily sourced from lower grade splay material.

Despite that, Acacia notes that it will extend mining at Buzwagi until the end of 2017, which will lead to an increase in production compared to 2016.

Tanzania Gold

Gold production in Tanzania stands at around 1.8m oz per year which makes it the 4th largest gold producer in Africa after South Africa, Ghana, and Mali.

Acacia Mining operates three mines in Tanzania: Bulyanhulu, Buzwagi and North Mara.

Bulyanhulu is an underground gold mine in the Shinyanga region of Northwestern Tanzania, located 55km south of Lake Victoria.

Bulyanhulu commenced commercial production in 2001 and has produced over 3m oz of gold to date. Total reserves and resources at the Bulyanhulu gold mine are estimated to be 17.1m oz.

Buzwagi is an open pit gold mine in the Shinyanga region of Northwestern Tanzania, located 6km southeast from the town of Kahama in Tanzania.

Buzwagi commenced commercial production in 2009 and has produced over 1m oz of gold to date. Total gold reserves and resources at the Buzwagi mine are estimated to be 2.7m oz.

North Mara is a combined open pit and underground gold mine in the Mara Region of Tanzania.

North Mara commenced commercial production in 2002 and has produced over 2m oz of gold to date. At the North Mara mine, total reserves and resources are estimated to be 3.8m oz.

Gold mining company Shanta Gold (AIM:SHG) announced that gold production at its New Luika mine in southwest Tanzania rose by 7%, from 81,873 ounces (oz) in 2015 to 87,713oz in 2016.

This was indicated in Shanta’s recently published production and operational update for Q4 2016.

The update also shows that gold production in 2016 has beaten the guidance of 82,000–87,000oz for that year.

Accordingly, gold sales in 2016 also increased by 7% to 86,331oz from 80,622oz in 2015; the average price of sales was USD1,232 per oz.

Toby Bradbury, CEO of Shanta, said: “In 2017, Shanta will continue to deliver high margin ounces and to generate strong operational cash flows. Shanta is now 15 months into New Luika’s Base Case Mine Plan, as presented in September 2015, and since then the Company has consistently delivered to meet its annual guidance, both in 2015 and 2016. The underground project is significantly de-risked with initial access already developed within the Bauhinia Creek orebody. High grade ore production from underground operations is scheduled to start within six months and I look forward to keeping the market updated on our progress.”

Shanta Gold Tanzania

Shanta Gold, through its wholly owned companies including Tanzanian subsidiary, Shanta Mining Company Limited (SMCL) is engaged in gold mining, development and exploration in Tanzania.

It currently has defined ore resources on the New Luika and Singida projects in Tanzania and holds exploration licenses over a number of additional properties in the country.

New Luika is an active gold mine in the Mbeya region in Southwest Tanzania and its Ilunga deposit is located 2.5km northeast of the New Luika central processing facility. The mine is fully owned by Shanta Gold, which started gold extraction in 2012.

Tanzania Gold

Gold reserves in Tanzania are estimated at about 45m oz with gold exploration centered mostly on the greenstone belts around Lake Victoria.

Gold production in Tanzania stands at around 50t per year which makes it the 4th largest gold producer in Africa after South Africa, Ghana and Mali.

Tanzania’s diamond production from the Williamson diamond mine in northwest Tanzania rose by 12% in H2 2016 to 106,831 carats (ca), from 95,841 ca in H2 2015.

This was indicated in the latest trading update, published by the majority owner of the mine, Petra Diamonds (LSE:PDL), on January 23rd, 2017.

The update notes that in H2 2016, the commissioning of a new mill section at the Williamson mine commenced and is expected to be completed during Q1 2017.

“Upon commissioning, both throughput and grades will improve […],” Petra indicates.

Petra further notes: “We are seeing some evidence of improving retail demand, with certain jewelry retailers reporting slight growth in sales for the 2016 festive period and at least narrowing declines being noted by others.”

“Signs of stabilization in the rough diamond market are evident with steady demand across the majority of size ranges, except in the smaller, lower value categories which have been experiencing some pressure due to the Indian government’s demonetization of high value banknotes and the subsequent impact of smaller midstream players on liquidity in the Indian diamond market,” the company notes.

Petra concludes that it is expecting market conditions to remain stable in H1 2017.

Tanzania Diamonds

Diamonds in Tanzania are found mainly in the Williamson diamond mine, 23 kilometers (14 mi) northeast of Shinyanga, in the northern part of the country.

Petra Diamonds, through its subsidiary Williamson Diamonds Limited, holds 75% of the ownership rights over the mine, while the Government of Tanzania owns the remaining 25%.

In 2015, the company produced 202,265 ca and plans to increase its production to 350,000 ca per annum in 2017.

In 2015, Tanzania was the 10th largest diamond producer in Africa after Botswana (17.3m ca), Angola (7.1m ca), South Africa (6m ca), the Democratic Republic of Congo (3.15m ca), Namibia (1.92m ca), Sierra Leone (0.5m ca), Zimbabwe (0.5m ca), Lesotho (0.35m ca) and Ghana (0.24m ca).

According to Petra Diamonds, the Williamson mine contains large diamond resources of approximately 38.1m ca.

Australian mining company Volt Resources (ASX:VRC) recently announced that an independent German metallurgical laboratory has confirmed the high quality of the Namangale graphite concentrate.

The tests also show that the concentrate is highly suitable for producing commercial grade expandable graphite for flame retardant foam and graphite foil, which are two key growth markets for graphite distribution.

The report indicates: “expansion tests of expandable graphite made of flake graphite concentrate from Namangale were very successful compared with product from other origins.”

Volt notes that the German group that completed the testwork is a global specialist in graphite testing and analysis.

“This is highly encouraging news flow for Volt, as proposed regulatory changes in China and Europe for the mandatory use of non-toxic substances in flame retardant building materials could result in substantial future demand for expandable graphite,” the company indicates.

“Having independent test work confirm the suitability of Volt’s graphite product in the flame retardant building materials market is a key differentiating feature from rivals,” Volt adds.

Trevor Matthews, CEO of Volt, commented: “With recent initial tests in the U.S. confirming the high quality of Volt’s concentrate to be used in lithium-ion batteries, it is very encouraging to have independent confirmation that Namangale graphite concentrate is highly suitable for expandable graphite too. The sales and marketing team will be targeting prospective end-user customers globally across a range graphite end-user markets. At this point in Volt’s development, it is a significant differentiating feature and competitive edge to be able to deliver concentrate that can make high quality spherical and expandable graphite for various downstream applications.”

Namangale Graphite Project

The Namangale graphite project in south-east Tanzania is wholly owned by Volt Resources.

In Q2 2016, the company signed three Memorandums of Understanding (MoUs) for graphite off-take with some of the largest companies in the lithium-ion battery market: Chinese Optimum Nano, Huzhou Chuangya and Shenzhen Sinuo.

The MoUs cover an annual production of 100,000t of graphite, of which 60,000t with Optimum Nano, 20,000t with Huzhou Chuangya and the remaining 20,000t with Shenzhen Sinuo.

Tanzania Graphite

Tanzania’s largest graphite deposits are located in the central and east southern regions of the country.

Graphite discoveries in Tanzania come mainly from Australia based graphite developers, Magnis Resources (ASX:MNS), Volt Resources (ASX:VRC) and Kibaran Resources (ASX:KNL).

Australian resource company Graphex Mining (ASX:GPX) recently announced that the high grade mineral resource at its Chilalo graphite project in southeast Tanzania has increased by 80% to 16.9Mt.

Chilalo’s 16.9Mt high grade mineral resource is comprised of 5.2Mt indicated resource and 11.7Mt inferred resource.

The increase in the mineral resource follows the discovery of two new zones of graphite mineralization located adjacent to the north and southwest of the existing Chilalo mineral resource.

One of these is a new and separate zone of graphite mineralization located approximately 300 meters north and running parallel to the existing mineral resource.

The other is located to the southwest of the existing mineral resource, confirming the continuation of mineralization along strike.

Phil Hoskins, Managing Director of Graphex, commented: “We are pleased to have delivered such a significant increase in the high-grade Chilalo mineral resource and in doing so, further confirmed the outstanding prospectivity of our Chilalo tenements. The increase in the mineral resource is expected to extend the mine life and improve the project economics. This is an outstanding result, which combined with our ‘markets first’ approach to Chilalo’s development, is expected to yield an excellent outcome for shareholders. Our Chinese project partners place significant value in the exploration potential at Chilalo and this news will be welcomed by them as we seek to finalize negotiations for offtake and financing.”

Chilalo Graphite Project

The Chilalo graphite project is located in south east Tanzania, within the Mozambique belt, which is well known for hosting some of the world’s highest grade and coarse flake graphite deposits.

Average annual production is expected to be 69,000t of graphite concentrate over 10 years.

Graphex indicates that the Shimba deposit has a total resource (indicated and inferred) of 25.1m t; however, after a recent drilling program, Graphex has identified a new mineralized zone 200–300 meters north of Shimba.

Accordingly, this will underpin an increase in the Shimba mineral resource estimate, which is expected to be announced in the near future, Graphex notes.

Hoskins commented: “We have still only scratched the surface on our tenements and I expect additional exploration to be carried out following the finalization of project offtake negotiations. Given the number of untested targets, Chilalo has the potential to host one of the world’s largest graphite resources.”

Tanzania Graphite

Tanzania’s largest graphite deposits are located in the central and east southern regions of the country.

At the end of 2015, The Tanzanian Ministry of Energy and Minerals (MEM) announced that Tanzania will soon become one of the largest producers of graphite in the world, due to recent and abundant discoveries of graphite fields across the country.

Graphite discoveries in Tanzania come mainly from Australia based graphite developers, Magnis Resources (ASX:MNS), Volt Resources (ASX:VRC) and Kibaran Resources (ASX:KNL).

Australian graphite developer Magnis Resources (ASX:MNS) recently signed a Memorandum of Understanding (MoU) with Russia’s nuclear corporation ROSATOM for project financing and offtake of its Nachu graphite project in southeast Tanzania.

Under the MoU, both organizations will work together towards a binding offtake agreement once further negotiations take place and certain milestones are met.

“Interest revolves around the Super Jumbo (+500 microns) and Jumbo (+300 microns) flake graphite sizes. The larger flake sizes are currently being consumed by ROSATOM in several of its business divisions including nuclear power generation, aerospace and creating composites,” Magnis indicates.

Frank Poullas, Chairman of Magnis, commented: “Today’s announcement is a key step towards a binding offtake agreement for our Super Jumbo and Jumbo products and potential financing with the world’s largest nuclear power technology company.”

“ROSATOM is the world leader in the development and construction of nuclear reactors with over USD130b worth of orders in place. Larger flake graphite which our Nachu Project will produce is a key material used in these nuclear reactors and it is highly sought after. Our project therefore is strategically important to ROSATOM over the longer term.”

“The Magnis board looks forward to a long fruitful relationship with ROSATOM and our focus now is to move the MOU into a binding offtake agreement.”

Alexander Merten, President of ROSATOM, added: “We are pleased to enter into this MoU with Magnis. ROSATOM is known for the quality of its products and we are seeking to develop long term partnerships with the highest quality graphite producers in the world. Magnis has these key attributes.”

Nachu Graphite Project

The Nachu graphite project in southeast Tanzania is 100% owned by Magnis and represents one of the largest mineral resources of large flake graphite in the world.

The Nachu operating life is estimated at approximately 15 years. “This comprises approximately 11.7 years at 240,000 tpa nameplate concentrate output after which lower grade ore stockpiles are processed for another 3.5 years at an average concentrate output rate of 160,000 tpa,” as indicated in the Magnis website.

ROSATOM, through its subsidiary Uranium One, is the owner of the Mkuju River uranium project located in southern Tanzania.

Tanzania Graphite

Tanzania’s largest graphite deposits are located in the central and east southern regions of the country.

At the end of 2015, The Tanzanian Ministry of Energy and Minerals (MEM) announced that Tanzania will soon become one of the largest producers of graphite in the world, due to recent and abundant discoveries of graphite fields across the country.

Graphite discoveries in Tanzania come mainly from Australia based graphite developers, Magnis Resources (ASX:MNS), Volt Resources (ASX:VRC) and Kibaran Resources (ASX:KNL).

UK-based energy and mining company Edenville Energy (AIM:EDL) recently signed a Memorandum of Understanding (MoU) with Chinese hydropower company Sinohydro Corporation for codevelopment of the Rukwa Coal to Power Project in southwest Tanzania.

“The MOU sets out the basic terms to build a strategic partnership between Edenville and Sinohydro with the aim of then proceeding to a formal Joint Development or Joint Venture Contract, where Sinohydro will have the role of EPC (Engineering, Procurement and Construction) contractor for the Project,” Edenville indicates.

The MOU is valid for 18 months until July 19th, 2018 and gives both companies exclusive rights to work with each other on the project during this time.

The tasks to complete predevelopment will be shared by the two companies, depending on the relevant experience and specialization of each of Edenville and Sinohydro.

Throughout the MOU period, Edenville will retain all its ownership rights, shareholdings and control of its coal deposit.

Edenville notes that Sinohydro has previously committed considerable time and resources to the Rukwa Coal to Power Project.

In H2 2016, prior to signing the MOU, Sinohydro carried out extensive review work on site along with completing a technical proposal and an independent financial model.

As part of its commitment pursuant to this MOU, Sinohydro will complete a Bankable Feasibility Study (BFS) at the cost of approximately USD1m for the proposed Rukwa Power Plant.

Edenville will be responsible for the continued development of the coal mine portion of the project along with the permitting and legal aspects to advance the power plant to its construction phase.

Rufus Short, CEO of Edenville Energy, commented: “I am extremely pleased that we have been able to develop our working relationship with Sinohydro over the later part of 2016 when they carried out extensive feasibility work, culminating in the signing of the MOU. We can now advance together and move the Project to the stage where the goal is a formal EPC contract and the subsequent development of the Project.”

“Sinohydro’s broad experience in Africa and its presence in Tanzania for over a decade give us the confidence that we have joined with a group that can bring many positive benefits to the Project and execute the construction process efficiently and cost effectively,” he added.

Rukwa Coalfields Project

At the beginning of 2016, Edenville Energy was granted with a mining license by Tanzania’s Ministry of Energy and Minerals (MEM) to develop its Rukwa coalfields project in the country’s south western region.

“Whilst the Company’s Rukwa coal resource could support a larger power plant it is currently envisaged that a plant in this range [120–135MW] will be the best option to establish power generation in the shortest possible timescale,” Edenville indicates.

Tanzania currently generates less than 1% of its total installed capacity of 1,754MW from coal-fired power plants that are fully supplied by imported coal according to the African Development Bank (AfDB).

In 2013 Tanzania imported USD1.35m of coal briquettes to supply its coal-fired power plants, mostly from Malawi, accounting for 86% of the total imported according to the Massachusetts Institute of Technology (MIT).

According to Edenville, the Rukwa Coalfields could potentially help diversify Tanzania’s energy feedstock in partnership with a power provider.

Oil exploration and production company Aminex (LON:AEX) recently announced that drilling at the Ntorya-2 (NT-2) appraisal well in the Ruvuma basin in onshore southern Tanzania has uncovered a gross gas bearing reservoir unit of approximately 51 meters.

Aminex indicates: “Drilling of the reservoir section was associated with significant gas influxes and higher than expected pressures. The result is well ahead of the Company’s pre-drill expectations.”

NT-2 has also encountered traces of oil in the gross reservoir interval and the Aminex is now evaluating the implications of this development through an updated basin model.

Jay Bhattacherjee, CEO of Aminex said: “We are delighted with the progress of the Ntorya-2 appraisal well, which is ahead of our expectations. The reservoir is both thick and high quality. Aminex looks forward to providing the results of the flowtesting which will enable the joint venture to consider its options for development of the Ntorya field.”

Aminex has a 75% operated interest in the well, while the remaining 25% are held by oil and gas investment company Solo Oil (LON:SOLO).

Neil Ritson, Solo’s Chairman, commented: “We are extremely pleased with the results of the well which fully confirm the presence of thicker gas bearing reservoirs up dip from the gas condensate discovery at Ntorya-1. These results move us a significant step forward in the commercialization of the Ntorya discovery and we look forward to some exciting further results in the coming weeks.”

The NT-2 appraisal well is located approximately 1,500 meters southwest of the Ntorya-1 (NT-1) discovery well, which flow tested at 20 million cubic feet per day of gas (mmscfd).

Additionally, Aminex has reported that it has now completed all necessary civil works for the Ntorya-3 (NT-3) wellsite.

NT-3, located approximately 5 km from the NT-1 discovery well, is expected to be drilled following NT-2; however, the program may vary depending on the results at NT-2.

Australian graphite developer Kibaran Resources (ASX:KNL) announced that recent industrial scale tests have confirmed the excellent suitability for use in lithium-ion batteries of the graphite produced from its Epanko project in southeast Tanzania.

The results of the tests show that the Epanko graphite has the requisite physical and chemical properties for use in high quality lithium-ion batteries (graphite is used in lithium-ion battery as the anode).

Kibaran notes that key properties of the Epanko graphite including particle size distribution, tap density and impurity levels are in-line and meet leading battery anode manufacturer specifications.

Andrew Spinks, Managing Director of Kibaran, commented: “We continue to be encouraged by positive

feedback from leading battery anode manufacturers as we advance through the negotiation process. Our spherical graphite was produced from large scale industrial-sized facilities, rather than lab-scale testwork, thereby allowing battery anode manufacturers to determine real world performance and replicability of the material. Kibaran is well positioned to become a leading producer of graphite products with all requisite mining studies completed for Epanko, a granted mining licence and attracted “blue chip” offtake partners […]”

Kibaran recently started studies on expanding the production capacity of the Epanko Graphite Project by 50% from 40,000 tons per annum (tpa) of graphite concentrate to 60,000tpa.

The company decided to start the expansion studies after securing binding agreements covering all of the project’s 40,000tpa forecasted production.

Kibaran already has binding agreements for 20,000tpa with German company ThyssenKrupp, 10,000tpa with European graphite trader and 14,000tpa with Japanese trading giant Sojitz.

Tanzania Graphite

Tanzania’s largest graphite deposits are located in the central and east southern regions of the country.

Graphite discoveries in Tanzania come mainly from Australia based graphite developers, Magnis Resources (ASX:MNS), Volt Resources (ASX:VRC) and Kibaran Resources (ASX:KNL).

Kibo Mining (AIM:KIBO, JSE:KBO), a Tanzania focused mining company, recently announced that the Mbeya Coal to Power Project has reached a very advanced stage following the completion of the Environmental and Social Impact Assessment (ESIA) work.

Louis Coetzee, CEO of Kibo Mining, said: “Completion of all the ESIA work marks another major step forward in the development of the MCPP, which has now reached a very advanced stage of development and is continuously gaining in momentum.”

The Project, located in south western Tanzania, has total coal resources of 121Mt (20.9Mt measured, 88.6Mt indicated, 11.3Mt inferred).

Tanzania Coal
Coal reserves in Tanzania are estimated at 1.9b t, 25% of which are proven, according to the Tanzania Minerals Audit Agency (TMAA).

Production of bituminous coal in Tanzania rose significantly during 2010–2013, from 179t to 128,920t.
Coal in Tanzania is currently exploited in small scale at Kiwira Coal Mine in Mbeya Region and Tancoal Energy Limited Mine at Ngaka in Ruvuma Region.

Kibo Mining (AIM: KIBO; AltX: KBO) announced on 24th February 2017 that it will cease activities at its Pinewood and Morogoro uranium coal and gold projects with immediate effect.

Both projects are a 50/50 joint Venture between Kibo Mining and Metal Tiger (LON:MTR), a company primarily focused on undervalued natural resource opportunities.

According to the company’s press release, the reason behind this strategic choice is in that both Metal Tiger and Kibo Mining have experienced considerable success in other projects of their business portfolio and this has led to these interests becoming the absolute focus of each company.

The company will relinquish the licenses back to the local authorities.

Metal Tiger’s investment in Botswana has seen a substantial and developing copper/silver discovery and significant progress is being made in the company’s investment in Thailand.

Kibo Mining has substantially advanced its Mbeya Coal to Power Project, as well as its Imweru and Lubando gold projects.

“It is therefore appropriate that both companies focus their efforts, energies and resources on these important core projects and take the steps necessary to reduce non-core investments and activities, including Pinewood and Morogoro, which although worthwhile in themselves, could distract each company from their main commercial purpose”, the press release reads.

Kibo Mining’s CEO Louis Coetzee commented: “The Joint Ventures at Pinewood and Morogoro have not progressed as planned as explained above and although unfortunate, this reflects the need to focus investment correctly in smaller companies with multiple projects.”

Michael McNeilly, CEO of Metal Tiger commented: “Given the need for continuing focus for commercial reasons, and reflecting the impact our commercial success would have on the local economies in which we work, it is essential for us to ensure we focus our efforts in the most important areas.”

Kibo Mining plc is a Tanzania-based minerals exploration and development company, focused on realising value from the Mbeya Coal to Power Project (MCPP) (formerly known as Rukwa Coal to Power Project) and the Imweru gold project, as well as holding one of the largest exploration land packages in the country with assets spanning coal, gold, uranium and nickel-platinum group metals.

The Ministry of Energy and Minerals of Tanzania issued a ban on the export of mineral concentrates and ores for metallic minerals such as gold, copper, nickel and silver, with effect from 2nd March, 2017.

“The ban intends to make sure that mineral value addition activities are carried out within Tanzania as emphasized in the Mineral Policy of 2009 and Mining Act of 2010”, the press release from the ministry reads.

The Government will also provide the necessary support to stakeholders involved in mineral beneficiation activities within the country, particularly smelting and refining of minerals.

Following the ban, Acacia Mining (LON:ACA, DSE:ACA), the leading gold producer in Tanzania, issued a press release to respond to the ban.

It notes that in 2016, Acacia’s gold/copper concentrate amounted to approximately 30% of group revenues.

“At this stage, Acacia has ceased exports of gold/copper concentrate and is urgently seeking further clarification from the Ministry of Energy and Minerals” the press release concludes.

According to the latest Annual Report by the Tanzania Minerals Audit Agency (TMAA), gold production (gold bars and copper concentrate products) by six major gold mines in Tanzania reached 1.36 million troy ounces in 2015, up by 7% from 1.27 million troy ounces in 2014.

The increase was mainly contributed by higher gold output at the Gand Bulyanhulu Gold Mine (BGM) of Acacia Mining and at the Geita Gold Mine (GGM) of Anglogold Ashanti (JSE:ANG, NYSE:AU, ASX:AG).