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That dont have a "comprehensive plan" - hmm > maybe a hint for Lorna to get on with it and come up with a comprehensive plan - maybe in the conversations when govt minister visits and talks to Lorna they think this is going nowhere, going to take 100 years to mine this place for Helium the pace HE1 are going - I also take that comment as a possible get on with it urgently" to He1 and Noble...massive areas of land we lending you and you put a tiny little pin in it all. 'We need bigger and faster guys' - maybe thats a message?
But skittish, NHE is a case in point, they are struggling to raise cash and, had the Itumbula drill not been mildly successful He1 might well have gone totally tit's up and incapable of operating their license.
Having said that I do largely agree with Skippys - it is all for Tanzanian voter's / populace consumption, it is highly unlikely to ever transition into a reality
... but it's mainly politics. Government tells people they have all these amazing assets and they will do what's needed to make that work for Tanzania. People ask questions about why nothing is happening. Government talks tough.
I wouldn't expect the soundbite to result in policy or visible change to reality.
Agreed - summed up by;
Sh*t or get off the pot
That would be one logical application of the policy, yes.
What actions or investment might be considered to be "added value" is a moot point but I suspect it would include infrastructure, employment, internal distribution, conversion of primary industry to secondary industries, joint ventures with local businesses, generation of foreign currency etc
It might also mean that, going forward, it might make it more difficult smaller enterprises like He1 and NHE from participating in those licences because without the guarantee of future funding how can smaller companies ever provide the guaranteed outcome that they have set out? Hence the charm offensive by LB perhaps.
Yes Skittish your point about getting rid of the 'lazy holders' so to speak - is clear - very good point - thanks for that
Its almost as if they didnt need to be said; I would have assumed that the deal anyway - most businesses should have a thorough plan and roadmap before they get to stage to invest and one would assume the associated benefits for Tanzania would come with that too - remember there is a 16% free carry as well as a 30% tax rate - so its there assumed - I feel they are having to make a point to be saying those things and I am wondering Why they actually felt the need to make those statements
TS, no exactly the opposite. They want the He1's and Nobles with a proven track record of raising capital. And He1 have their own rig!!!
What they don't want is the loafers and shirkers who sit on licence applications for a decade and do nothing. That is why the Mining Commission has recently taken over a thousand mining licences including 50+ helium licences, and ejected their sitting but lazy tenants.
See my previous posts for what is really going on, and the Eyasi gas, oil thingy.
So CrustyPete what you saying is that you reckon that a warning shot to bigger players as they hover around Noble and HE1 looking to take them both out - "thats possible, but you must show prove of benefit for Tanzania and a Clear Associated Roadmap"
I think that means that, irrespective of your size (small companies excepted) any company that applies for a mining license will be expected to articulate a route to market and fund the development of any assets they are looking to mine and demonstrate how Tanzania and its population will benefit from that development - even if that means re-investing the proceeds into the Tanzanian economy.
I am not sure that this would apply to a company the size of He1 or NHE as it is difficult to see how they would qualify as a "medium to large scale operations" by anyone's judgement. Their lack of scale determines their need to keep running cap in hand to the market for funding at every and any turn..... It surely hardly breeds confidence on the part of the Tanzanian authorities that they will be able to complete on the development without continued bailing out and, probably, an eventual sale; or "cornerstone investor". RJ, CP - ring a bell?
Regarding statements below could it be interpreted as they wouldnt go down the HE1 and Noble route again given the struggles and slow pace for small time outfits? I would be keen to read other people's interpretation and context of these statements.
“With immediate effect, we will no longer issue mining licences and special mining licences for medium and large-scale operations involving all minerals, including strategic and essential minerals, to any investor who does not have a comprehensive plan to add value to minerals in our country,”
“The aim is to ensure that our country benefits from the abundant mineral resources we are blessed with.”