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.

 

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

Alvo Minerals

Alvo Minerals finds itself a new Brazilian target

Every now and then in the mining game you meet people with a knack of finding more than one good…

Goodman Group

Goodman Group (ASX:GMG): It looks expensive at A$65bn, but can its expansion into Data Centers make it worth its high price?

Goodman Group (ASX:GMG), the ASX’s biggest industrial property player, is making a shift into the world of data centres. On…

ASX resources stocks with a DFS

Here are 5 ASX resources stocks with a DFS unveiled in the last 12 months!

ASX resources stocks with a DFS (Definitive Feasibility Study) have the best possible chance for investors to profit. Companies in…