Graphite: Tanzania publishes export regulations update for natural graphite

The Government of Tanzania has published updated regulations concerning the export of natural graphite concentrate. The new regulations make no changes to either the 65% minimum content for total graphitic content (TGC) or to the payment of royalties as conditions of export. The Mining Regulations, 2020 supersedes the Mining Guidelines set last year.

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The regulations appear to make no distinct changes to the exports of graphite from Tanzania, but for the number of natural flake graphite developers in the country, they represent a step towards greater clarity and the stability needed for long-term growth. The Tanzanian mining sector has gone through a number of fluctuations in recent years with tightening government controls including changing rules on company ownership, increased export duties and a temporary removal of mining licenses, which have created headwinds to project development.

Mining licences were suspended from July 2017 pending a major overhaul of the fiscal and regulatory regime, and so a new mining commission could be put in place. Changes included a requirement for the state to own at least 16% of mining projects while also raising export duties. Mining licences for foreign graphite developers only began to be assigned again from September 2018.

Investment in new graphite mining projects has since begun to return to Tanzania, spurred by a stabilising political situation, an increasing Chinese appetite for foreign imports, and the success of natural graphite projects in other African countries.

Companies developing flake graphite in Tanzania that have taken their projects to completed feasibility level include EcoGraf (previously Kibaran Resources, developing the Epanko deposit), Magnis Energy Technologies (Nachu), Walkabout Resources (Lindi Jumbo), Black Rock Mining (Mahenge), Graphex Mining (Chilalo), Armadale Capital (Mahenge Liandu) and Volt Resources (Bunyu).

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This article was written by Suzanne Shaw. Please get in touch below if you wish to discuss further:

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