Volt Resources Limited (ASX:VRC), a critical minerals and advanced materials company and established graphite producer, has announced that its Tanzanian subsidiary, Volt Graphite Tanzania plc, received formal notification from the Ministry of Minerals regarding the cancellation of mining licences ML 591/2018 and ML 592/2018 for its Bunyu Graphite Project. Volt expressed extreme disappointment with this decision.
The company has invested substantial time and resources into the Bunyu Graphite Project, encompassing exploration, feasibility studies, approvals, and community engagement. Recent progress included establishing a defined project funding pathway through a binding term sheet with Unbounded Opportunities Fund, which has since terminated due to licence uncertainty and unresolved differences. Volt had also varied its binding coarse flake offtake agreement with Qingdao Baixing Graphite Co., Ltd and advanced site implementation readiness, including office and storage facility completion.
Volt’s Board does not accept the cancellation was warranted and will assess legal steps, including appealing the Mining Commission’s decision to the relevant Tanzanian court and exploring remedies under international law. The company noted that there can be no assurance such processes will be successful or that the licences will be reinstated. The Board stated, “We will pursue the available legal mechanisms to seek a solution that recognises the strategic importance of Bunyu for Tanzania and Volt.”
Despite the Bunyu setback, Volt continues its other operations, including a 70% interest in the Zavalievsky Graphite business and progressing its US downstream graphite strategy with a planned high purity graphite refinery in Alabama. The company is assessing the impact of the licence cancellation on its financial condition and is working with noteholders on security arrangements, with securities remaining suspended from quotation on the ASX.
