We’re not against new mining laws: exploration firm

Dar es Salaam. Liontown Resources Limited, which runs two gold exploring projects in Tanzania, has said it did not close its Tanzania country office out of protest to the new legislative changes, but purely out of business considerations.

The company alerted its investors, as required by Australian laws, in a statement released on July 20 that it had closed its Tanzanian office and retrenched its Tanzanian staff as it continues to assess the full impact of the new laws over its investments in the country.

“Our statement released to the Australian Securities Exchange (ASX) [on July 20] was not a protest to the Tanzanian government’s initiatives on new legislation and changes to the mining act,” Liontown said in a clarification it issued to The Citizen, adding “Liontown recognizes, supports and commends the desire of the Tanzanian government to develop its minerals and mining industry in a sustainable manner, ensuring the best return for its citizens on its natural resources.”

The Australia-headquartered Liontown Resources Limited – which runs Simba and Panapendesa gold resources at the Jubilee Reef Project within the Lake Victoria Goldfield – said its announcement was necessitated by a requirement in the Australian law that obliges public listed companies at ASX to advise its shareholders and other potential investors of any news that may materially impact on the company’s activities or overall value.

“The recent changes to the Mining Act in Tanzania may have a material impact on the way Liontown conducts its business and the company is legally bound to notify its shareholders and potential investors that it has decided to scale down its activities in Tanzania until the impact of legislative amendments have been clarified,” Liontown says.