Two Tanzanian-focused, ASX-listed graphite plays have given their shareholders some comfort that their projects are still viable despite a raft of onerous new mining laws in the East African country. 

The laws give the Tanzanian Government the power to tear up and renegotiate mining contracts, partially nationalise resources companies, introduce higher royalties, enforce local beneficiation of minerals and bring in strict local content requirements. 

The laws also deny the rights of mining companies to seek international arbitration and relief in the event of a dispute with the Government. 

The suddenly enacted laws have blindsided a raft of Perth-based explorers operating in the country and forced them to urgently seek advice on how they might be affected. 

Yesterday, shares in Graphex Mining bounced sharply after it advised the market that its Chinese partner remained committed to the company’s Chilalo project, albeit on the basis of a slightly reduced investment. 

The CN-Docking-led syndicate has committed to a 42 per cent stake in Chilalo for between US$15 ($19.37) million and US$17 ($21.95) million, down from a previous 50 per cent stake for between US$20 ($25.82) million and US$23 ($29.70) million. 

Graphex Managing Director Phil Hoskins described the revised agreement as a tremendous vote of confidence in the quality of the project. 

On Wednesday, Kibaran Resources said its international banking partners Germany’s KfW IPEX-Bank and South Africa’s Nedbank remained supportive of a debt financing package for its Epanko graphite project in Tanzania. 

“The company remains confident that it is well positioned to accommodate the new Tanzanian mining provisions in its development plans,” Kibaran said.