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A project that had been steadily lining up funding, customers and construction readiness is now at the centre of a high stakes dispute, after Tanzania moved to cancel Volt Resources’ mining licences for the Bunyu graphite project. The decision halts what had become one of the more advanced graphite developments in East Africa and pushes Volt into a defensive position at a critical moment in its growth strategy. Rather than advancing into construction, the company is now weighing court action and international remedies to preserve its position.
“The decision to cancel the Bunyu mining licences is very disappointing given the significant progress the company has made in securing funding, strengthening offtake arrangements and advancing early works onsite, as well as the substantial investment already made in Tanzania over many years,” stated the Volt Board. That progress had been tangible as Volt had spent years moving Bunyu through exploration, feasibility and approvals, while simultaneously building the commercial framework needed to support development. In December 2025, it secured a binding term sheet with the Unbounded Opportunities Fund that outlined a funding pathway, including a proposed 11.1 million dollar equity investment subject to conditions.
Market alignment had also improved. The company revised its offtake agreement with Qingdai Baixing Graphite earlier this year to reflect an updated development timeline and expanded its contracted sales volumes to 20 000 tonnes a year in the first two years and 90 000 tonnes a year from years three to five. Operationally, Bunyu was edging closer to execution. Facilities at Namangale were nearing completion, and Volt had mapped out a sequence of early stage works for 2026 and early 2027, including resettlement processes, secondary approvals, road upgrades, borefield development, testwork and initial site preparation.
The company had also maintained a visible presence in the Lindi region through its social responsibility initiatives, investing in school infrastructure and community support projects as part of its longer term engagement strategy. That forward trajectory has now been disrupted. With no assurances that discussions with the Tanzanian government will reverse the licence decision, Volt has allowed its funding agreement with the Unbounded Opportunities Fund to lapse, citing both regulatory uncertainty and unresolved commercial terms.
The company is now assessing its legal pathways, including appealing to Tanzanian courts and exploring remedies under international law in response to the cancellation of its licences. At the same time, it is working with noteholders to restructure security arrangements, aiming to ensure that its financial position remains intact. What had been a development story is now a test of resilience in the face of sovereign risk. Bunyu’s future will depend less on technical execution and more on how effectively Volt can navigate a legal and regulatory landscape that has shifted abruptly.
The outcome will resonate beyond a single project. As governments assert greater control over strategic minerals, disputes of this nature are becoming more common and how companies respond may define their ability to operate in emerging resource jurisdictions.
