Magnis Resources Limited (“Magnis” or the “Company”) (ASX:MNS) is pleased to advise that agreement has been reached with the Government of Tanzania (GOT) on amendments to the Special Economic Zone (SEZ) licence, granted to Magnis Technologies Tanzania Ltd (MTT), a 100% owned subsidiary of Magnis.
The SEZ under the jurisdiction of the Department of Industry, Trade and Investment, governs the operation of the graphite processing plant and is not subject to the changes in the mining legislation promulgated last year.
The SEZ license for production of value added graphite products is the only such license to be granted in Tanzania.
The amendments are significant and a major value catalyst for Magnis and underpins the development of the Company’s Nachu Graphite Project which includes the processing facility.
Following the introduction of new mining sector legislation in Tanzania during the second half of 2017, Magnis has continued to progress discussions with the GOT regarding the development of the mining and processing projects. The GOT has expressed its desire to see the implementation of large projects that will add significant value to the country’s economy and development.
Those discussions led to Magnis submitting a proposal outlining that the entire Nachu processing plant will operate under MTT in the SEZ licence area, with the products from the SEZ continuing to be advanced graphite products that can be made using Magnis’ proprietary technology.