Indiana Resources (ASX: IDA) (Indiana or the Company) would like to acknowledge the recent passage of three supplementary bills, the Natural Wealth and Contracts (Review and Renegotiation of Unconscionable Terms) Act 2017, the Natural Wealth and Resources (Permanent Sovereignty) Act 2017 and the Written Laws (Miscellaneous Amendments Act) 2017 (together, the Proposed Legislation).
Indiana understands that to a large extent, the Proposed Legislation is designed to address the mining and export of precious metals and metal concentrates from existing operations in Tanzania, which have been the focus of a recent review conducted by Presidential Committees.
As an exploration company, a large number of the new provisions of the Proposed Legislation are not expected to impact Indiana, as they appear to be targeted at producers of metals and metal concentrates.
Indiana remains committed to exploring and developing in Tanzania and contributing to the unlocking of the mineral resources of Tanzania for the benefit of all Tanzanians.
Notwithstanding that commitment, with the current uncertainty associated with the Proposed Legislation, the Company has decided that for the time being, it is prudent to cease its exploration activities until it is able to fully engage with the Tanzanian Government to understand the full impacts of the proposed Legislation.