Is Tanzania back as a graphite destination in 2023?
Nick Sundich, April 11, 2023
Tanzania has been a troublesome destination for ASX resources companies. Companies with projects there are still bearing the scars of the sudden changes to the Mining Code in 2017. But things are looking better nearly 6 years on.
No time to do stock research, but you still want to invest?
Stocks Down Under Concierge gives you timely BUY and SELL alerts on ASX-listed stocks!
With price targets, buy ranges, stop loss levels and Sell alerts too.
GET A 3-MONTH FREE TRIAL TO CONCIERGE TODAY
Tanzania’s reputation is shaky
The changes to the Mining Code in 2017 caused years of hell for virtually all the ASX companies with projects there.
Among other things, it mandated a mandatory 16% government stake in projects, banned unprocessed ores, prohibited disputes from being adjudicated in international courts and the power of the parliament to retrospectively reject or expunge terms in existing agreements considered to be unconscionable.
Then-President John Magufuli died in 2021 and was replaced by Samia Suluhu Hassan. Things have looked up for companies with projects in Tanzania ever since as the new administration sought to rebuild its reputation.
Progress is being made
This morning, two ASX companies with projects in Tanzania announced their invitation to a Framework Agreement Signing Ceremony for next Monday (April 17), i.e. Peak Rare Earths (ASX:PEK) and graphite play Evolution Energy Minerals (ASX:EV1).
Both companies gained at market open, although the former company was the stronger performer.
Peak Rare Earths (ASX:PEK) share price chart, log scale (Source: TradingView)
What about other long-suffering companies in Tanzania? If they sign formal agreements soon, shares might re-rate. Otherwise, the stagnation might continue.
Stocks Down Under Concierge gives you timely BUY and SELL alerts on ASX-listed stocks!
With price targets, buy ranges, stop loss levels and Sell alerts too.
GET A 3-MONTH FREE TRIAL TO CONCIERGE TODAY
There’s no credit card needed – the trial expires automatically.
Blog Categories
Get Our Top 5 ASX Stocks for FY25
Recent Posts
Top 10 ASX Dividend Stocks to Watch in June 2025
As investors, one of the most attractive features of the Australian Securities Exchange (ASX) is its long-standing reputation for dividend-paying…
From Explorer to Producer: Greatland Gold’s Strategic Evolution
Greatland Gold has long been associated with promising exploration projects across some of the world’s most mineral-rich regions. However, in…
Battery Age Minerals (ASX:BM8) hopes for a Golden Age from one of the biggest sources of Kerry Packer’s wealth
Last November, our colleagues at Pitt Street Research introduced you to Battery Age Minerals (ASX:BM8), whose potential company-maker is an…