Walkabout Resources to review DFS results for Tanzania’s Lindi Jumbo project
Walkabout Resources is set to evaluate the definitive feasibility study (DFS) results from Lindi Jumbo project to understand the scale of impact from recently amended Tanzanian mining laws.
Recently, the Tanzanian Government passed three Supplemental Bills amending the Mining Act 2010 (Act), which allows it to own 16% stake in the mining companies in the country.
In response to the legislative changes, the company stated that these would not significantly affect its operations, while it expects a considerable impact on the project economics.
It said that the amendments can potentially impede foreign investment in mining related activities in the country.
However, the company tried to reassure its shareholders that the changes will not force it to halt or suspend its investment in the Lindi Jumbo project or from working in the country.
Walkabout Resources executive chairman Benson said: "The board is of the view that the impacts of the amendments upon the project, while undesirable and in some cases onerous, are still workable and that the project should proceed during the phase of legislative clarification which will now occur.
“The company will continue to engage with the Government of Tanzania on the matters at hand.”
Meanwhile, the company is also planning to assess possible impacts to insurance and funding requirements for the project in the wake of the amendment which denies the seeking of relief regarding any natural wealth and resources matter in a foreign court or tribunal.