Marula Mining, an Africa-focused mining and development company, has secured seven new graphite mining licenses in Tanzania. The licenses are part of the company’s strategy to increase its commercial interest in the Nyorinyori Graphite Project and the NyoriGreen Graphite Project, where it holds a 75% stake.
The licenses, which are effective from 10 January 2024, have been granted to Takela Mining Tanzania (TMT) and NyoriGreen Mining Limited (NML), the local partners of Marula Mining. The company has paid an upfront consideration of $25,000 (£19,774) per license to TMT and NML, satisfied through the issuance of new ordinary shares in Marula.
The acquisition of the new licenses was based on technical discussions and recommendations from Geofields Tanzania, the company’s independent geological consultants. The licenses adjoin the existing Nyorinyori and NyoriGreen Projects and are deemed highly prospective for high-grade and large and jumbo flake graphite mineralization.
Marula Mining CEO Jason Brewer said: “Following the completion of the Phase 1 Programme at Nyorinyori and NyoriGreen, I am pleased to see that we will be able to expand our area of exploration and development through these highly prospective seven new graphite mining licenses.
“By securing these licenses and incorporating them into the commercial and technical services agreements Marula has with TMT and NML, we can strengthen our position in the area and consolidate our exploration activities at the projects so that we can continue to target locations of prospective high-grade graphite mineralization.
“With the support we have received from TMT and NML, and the recommendations made by our geological consultants, Geofields, we are in a prime position to progress our Phase 2 program of exploration activities at the projects.”
Graphite is a key component of lithium-ion batteries, which are used in electric vehicles, smartphones, laptops, and other devices. The global demand for graphite is expected to grow significantly in the coming years, as the world shifts to cleaner and more sustainable energy sources.
Tanzania is one of the largest graphite producers in Africa, with an estimated 17 million tonnes of reserves, ranking sixth in the world. The country has several active graphite projects, such as Bagamoyo, Bunyu, Chilalo, Epanko, Nachu, and Lindi Jumbo, which are being developed by Australian mining companies.
The Tanzanian government has been supportive of the graphite industry, offering attractive incentives and policies for investors. In 2023, the government reduced the corporate income tax rate for mining companies from 30% to 25% and waived the value-added tax on exports of graphite concentrate.
Marula Mining is confident that its graphite projects in Tanzania will deliver high-quality products that meet the specifications of the global market. The company aims to become a leading supplier of graphite in Africa and beyond.
Source: Mining Technology
