Is Tanzania back as a graphite destination in 2023?

Nick Sundich 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.

 

Is Tanzania back as a graphite destination in 2023? 1

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.

 

Is Tanzania back as a graphite destination in 2023? 2

 

Stocks Down Under
Average rating:  
 0 reviews

Recent Posts

ASIC

The Humm saga showed ASIC has significant powers

At the end of last month, ASIC dropped a bombshell on Humm (ASX:HUM) and its investors. For roughly 24 hours, the…

Voluntary administration

So you stock went into voluntary administration … Is it all over now or will you get any of your money back?

Voluntary administration – these are the two words that no investor wants to hear. What will happen next and will…

CET1 ratio

CET1 ratio: If you invest in banks, you need to know this

In this article we look at the Common Equity Tier 1 (CET1) ratio – what it is and why it…