Graphite mining project in southern Tanzania secures environmental approval

Dar es Salaam, Tanzania (PANA) - Tanzanian focused flake graphite development company, Volt Resources Limited, on Wednesday reported the completion of a key milestone in the development of its Bunyu Graphite Project in the south-east regions of Lindi and Mtwara, after receiving the Environmental Impact Assessment (EIA) Certificate from the National Environment Management Council of Tanzania (NEMC).

The Australian Securities Exchange (ASX) listed company submitted mining licence applications to the Minister for Minerals in February 2018 through its wholly-owned subsidiary, Volt Graphite Tanzania Ltd.

“Importantly, the EIA certificate signed by the Minister of State in the Vice President’s Office for Union Affairs and Environment, January Makamba, represents the final pre-requisite for the granting of Volt’s Mining Licence and one of the final remaining major milestones in terms of Government permitting for the Bunyu Graphite Project,” said Volt Resources CEO Trevor Matthews.

Recently the Tanzanian Minerals Commission issued revised formats for the Integrity Pledge and Local Content Plan to be submitted with the company’s mining licence applications.

“These have been completed and lodged with the Commission. Once the EIA certificate is lodged with the Commission the Company expects the two mining licences to be granted soon thereafter,” said Matthews in a statement made available to PANA.

The CEO explained that Volt’s Environmental and Social Impact Study submission was prepared in accordance with the requirements of relevant Tanzanian legislation including the Environmental Management Act 2004; the Environmental Impact Assessment and Audit Regulations 2005 as well as the Mineral Sector Environmental Impact Assessment Guidelines 2014.

Volt’s Chairman, Asimwe Kabunga, commented: “This is a significant milestone in the development of our Bunyu Project, as it transitions the company a step closer to receiving the all-important Bunyu Mining Licences.

“Volt would like to take this opportunity to thank the local communities and government parties within the Lindi and Mtwara regions, along with the National Environmental Management Council, our Tanzanian specialist consultants Tansheq Limited and their sub-consultants, and our staff for their support, commitment, tenacity and diligence throughout this important process.

“Looking ahead we remain firmly focused on advancing the Bunyu Project towards Stage 1 production, and we look forward to providing our shareholders with further updates on funding and development progress in the near-term.”

Volt Resources’ graphite concentrate from the Namangale graphite project in south-east Tanzania has been found to be highly suitable for producing valuable, commercial grade, expandable graphite.

The concentrate achieved high expansion volumes, making it suitable for use in flame retardant foam, graphite foil and other applications. The test-work was completed at a German laboratory which is a global specialist in graphite testing and analysis.

A definitive feasibility study undertaken in 2017 showed the project has an estimated pre-tax net present value (NPV) of US$1.31 billion based on a 22-year mine life, with an 87% internal rate of return and pay-back period of only 1.4 years.
-0- PANA AR/MA 5Sept2018

05 september 2018 11:21:28

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