Lindian Resources set for Sh92bn Bunyu graphite project in Tanzania

Australian firm, Lindian Resources is set for the first stage of its Bunyu graphite project in Mtwara Region in Tanzania.

The firm announced it is focusing on raising on raising $40 million (about Sh92 billion) for the project.  It signed an agreement to acquire the globally significant Kangankunde rare earths elements project in Malawi for $30 million (about Sh70 billion).

Company’s chairman and a major shareholder, Mr Asimwe Kabunga who issued the report said he has was impressed by President Samia Suluhu Hassan’s pro-business policies, and was looking forward to investing more in the country.

The Tanzanian-born Australian national is also chairman and a major shareholder of two other ASX-listed firms, Volt Resources and Resource Mining Corporation, both of which are heavily engaged in the exploration and development of battery minerals for the electric vehicle and energy storage industries.

“Volt has spent approximately $20 million to date advancing the large-scale Bunyu graphite project, and is in the funding phase to raise $40 million for the first stage development of the project followed by a second stage development that will cost approximately $170 million and place Tanzania as one of the largest producers of graphite globally,” Mr Kambunga said.

Lindian Resources

Lindian Resources is listed on the Australian Securities Exchange (ASX), and boasts a portfolio of high-grade bauxite assets on both the West and East coasts of Africa The firm had recently completed a drilling programme in the first of its nickel projects, and was in the process of acquiring a further five highly prospective nickel projects in eastern and southern Tanzania. It  plans to invest in a large-scale exploration campaign in its Tanzanian projects with the aim of identifying and positioning itself as a future major producer of nickel for lithium-ion batteries.

“The companies I run have invested heavily in Tanzania and will continue to do so. Recent announcements of investment by international resource companies such as BHP show that the investment climate in Tanzania is improving, and I commend the government for working to encourage investment in exploration and development of resource projects,” Mr Kabunga said.

“Minerals such as graphite, nickel, cobalt, lithium, copper and rare earths will all be required in significantly larger quantities over the course of this decade and the next decade. The mining industry can position Tanzania as a major supplier of technology minerals and a key participant in this global change to new energy. Volt Resources and Resource Mining Corporation aim to be a part of the growth of the mining sector in Tanzania,” he added.

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Articles

Back to top button