Volt Resources has received two necessary mining licenses from local officials to develop its Bunyu graphite project in Tanzania.
Volt Resources (ASX:VRC) has officially received one of the last green lights needed to proceed with developing stages 1 and 2 of its Bunyu graphite project in Tanzania.
The company was granted two mining licenses by the Mining Commission of the Ministry of Minerals of Tanzania, which cover the project’s two respective development stages. The licenses were provided on the conditions that Volt pay US$1,000 in preparation fees per license, accept the application’s boundaries and coordinates and accept the proposed licenses.
Since late July, Bunyu has seen the completion of its stage 1 feasibility study and the finalization of all required environmental approvals. The company is now waiting on the completion of the US$40-million note issue, for which Volt has submitted an updated prospectus and accompanying documentation to the Tanzanian Capital Markets and Securities Authority.
Once the necessary steps are completed, including approval by the Volt board, company subsidiary Volt Graphite Tanzania (VGT) will begin front end engineering and design work for stage 1’s initial operations, along with ordering long-lead time components. As stage 1 development takes place, VGT will be conducting the definitive feasibility study for Bunyu’s stage 2 expansion.
“This is a key milestone for Volt and our shareholders, as we have now effectively received all required primary development approvals in relation to our planned stage 1 and 2 developments at the Bunyu graphite project in Tanzania,” Volt chairman Asimwe Kabunga said in a statement.
“Volt has maintained a very transparent and positive dialogue with the Tanzanian authorities throughout the entire approvals process, and I would like to thank the relevant authorities for their support and input towards achieving these key approvals.”
Bunyu’s stage 1 development is based on a mining and processing plant annual throughput rate of 400,000 tonnes of ore to produce an average 23,700 tonnes per annum (tpa) of graphite products. One of the key objectives behind stage 1’s development is to establish infrastructure and market position to prepare for the much larger stage 2 expansion project.
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Securities Disclosure: I, Olivia Da Silva, hold no direct investment interest in any company mentioned in this article.