Column: Electric dreams turn into a nightmare for battery metals
A sector that was once racing to build new supply has been closing mines and deferring projects as low prices bite into the cost curve.
Indiana Resources Ltd. threatened legal action against Tanzania for alleged breach of contract after the East African nation amended its mining law.
Indiana, which has a majority shareholding in Ntaka Nickel Holdings Ltd., delivered notices to Tanzanian authorities over the amendments that effectively canceled retention licenses issued prior to January 2018, according to a statement.
In December, Tanzania invited joint-development tenders for tenements including those previously covered by the retention license, but excluded a requirement for the successful bidder to compensate previous holders for exploration costs incurred, Indiana said.
“It is now clear that Tanzania has removed the ownership of the project from investors, and in doing so has breached its obligations to the investors,” Indiana said.
Last week, Winshear Gold Corp. delivered similar notices over four retention licenses for its SMP Gold project, according to a separate statement.
Calls to the Mining Commission’s chairman, Idris Kikula, seeking comment went unanswered.
(By Ken Karuri)
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