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* Junior miners sign agreements at ceremony in capital
* Petra Diamonds gives govt 16% free carried interest
* Petra's stake in Williamson mine to fall from 75% to 63%
(Adds Petra Diamonds signed agreement)
By Nuzulack Dausen
DAR ES SALAAM, Dec 13 (Reuters) - Australia's Strandline
Resources, Black Rock Mining and Orecorp
on Monday signed framework agreements with the
government of Tanzania, a step towards the development of their
mineral sands, graphite, and gold projects.
Details of the agreements were not immediately available.
Tanzania's new government, under President Samia Suluhu
Hassan, has pledged to grow the mining sector. Relations with
mining companies have been improving since a January 2020 deal
with Barrick Gold ended a long-running tax dispute.
At a ceremony in Dar Es Salaam, Petra Diamonds also
signed an agreement granting the government a 16% free carried
interest in its Tanzanian subsidiary Williamson Diamonds
Limited.
The move brings Petra into line with Tanzania's 2017 mining
legislation which sees the government get a 16% free carried
interest in all major mines in the country. Like many African
countries, Tanzania has sought greater state control of the
mining sector.
Petra Diamonds and the government of Tanzania will each give
up a proportionate amount of their current stakes to grant the
16% free carried interest, which is given to the state without
any attached financial obligation.
Petra's stake will thus reduce from 75% to 63%, with
Tanzania's stake increasing from 25% to 37%.
Under the agreement, Petra and the government will both help
fund the restart of the Williamson mine - Tanzania's only major
diamond mine - which Petra suspended in 2020 due to the
coronavirus pandemic, and which has recently started ramping up.
(Reporting by Nuzulack Dausen in Dar Es Salaam, Writing by
Helen Reid; editing by Louise Heavens and David Evans)
