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Graphite developer Magnis Resources has been granted a Special Economic Zone (SEZ) licence for the development of an advanced graphite processing plant in Tanzania.
Tanzania – The approval to operate within a SEZ in Tanzania will allow ASX-listed Magnis Resources to apply the advanced technologies it has been developing to produce value enhanced graphite products from the Nachu graphite project.
“The Export Processing Zones Authority (EPZA) voted to grant the SEZ licence because Magnis has demonstrated through their project development work that they conform to the requirements of the SEZ objectives. Magnis has been identified as the key strategic investor in their sector, and the company has the full support of the EPZA in their endeavours,” says retired Col. J.L Simbakalia, director general of the EPZA.
“Magnis is the first mining company to achieve these requirements and the EPZA are especially pleased with their commitment to the development and advancement of Tanzanian Industry, particularly with a technology that has focused on environmentally friendly processes.”
“We have received, and continue to receive, strong support from the Tanzanian government and we are very encouraged to hear that Nachu is a project of significant importance to them,” says Magnis Resources chairman Frank Poullas.
Introduced in Tanzania in 2006, the SEZ legislation provides incentives for companies to create value addition and advance employment and development of Tanzania.
The SEZ legislation required Magnis to register a separate company in Tanzania to hold the SEZ licence and will be held by Magnis Technologies Tanzania (MTT). The company’s other subsidiary will continue to operate the mining operations and processing plant to produce a graphite concentrate which will then be sold at commercial rates to MTT. MTT will then use the technology Magnis has developed to produce the final advanced products.
Magnis has been actively developing advanced technologies to produce very high quality graphite products for the last two years and this technology is well suited to the SEZ requirements. Magnis has also been very cognisant of the focus of the Tanzanian government on value enhancement of exports and this SEZ development is a result of our commitment to those objectives.
The SEZ will operate on a section of land which will be excised from the existing special mining licence area and therefore no further land acquisition is required.
Benefits of SEZ
Key benefits include the exemption from payment of corporate tax for 10 years, the exemption of taxes and duties for machinery, equipment and construction materials for the development of SEZ infrastructure and the exemption from payment of withholding tax on rent, dividends and interest for 10 years.
