The government of Tanzania has inked three framework agreements with Australian resources companies which could result in the development of three critical mineral projects.

ASX-listed Peak Rare Earths has inked a binding framework agreement over its Ngualla rare earths project, which sets out the basis of the agreement for licensing, development, economic benefit sharing and the formation of a joint venture over the Ngualla project.

An updated bankable feasibility study (BFS) estimated the project would require a capital investment of $321-million and would support the production of 16 200 t/y of concentrates.

The updated BFS estimated a mine life of 24 years and yearly operating costs of $93- million, with the project expected to generate yearly average revenues of $538-million and operating cashflows of $276-million.

“The framework agreement lays the foundations for robust returns for Peak shareholders, long-term and sustainable benefits for the community and a substantial source of future revenue for the government of Tanzania,” said Peak CEO Bardin Davis.

“It further elevates Ngualla’s position as the premier undeveloped rare earths project in the world with high-grade ore reserves, low levels of radionuclides, a fully piloted flowsheet, and a completed updated BFS.

“We are now well positioned to progress completion of early works, offtake and financing workstreams ahead of the targeted commencement of construction in October 2023.”

Meanwhile, fellow listed Evolution Energy Minerals has also inked a framework agreement and shareholder agreement for its Chilalo graphite project, which is expected to require an up-front investment of $120-million, and will have a pay-back period of just over three years, delivering annual earnings before interest, taxes, depreciation and amortisation (Ebitda) of $82-million.

Chilalo is expected to produce 52 000 t/y of graphite concentrate, resulting in 12 000 t/y of steady-state expandable graphite sales and 8 000 t/y of steady-state micronised graphite sales over a mine life of 17 years.

“Completion of the agreements is a key milestone as we continue to progress towards the development of our Chilalo project. Financiers require certainty on the operation of the Tanzanian government’s free-carried interest and the completion of these agreements provides the certainty to support further investment from Evolution and debt and equity financiers,” said Evolution MD Phil Hoskins.

“Alignment with the government on the key principles underpinning the development of Chilalo is critically important. With these agreements now in place, we look forward to working together with the government of Tanzania to establish a commercial scale graphite mine that delivers meaningful benefits to all stakeholders.”

Furthermore, a framework agreement was also struck with ASX-listed EcoGraf for its Epanko graphite project, marking a major milestone in the company’s plans to develop a natural graphite operation in Tanzania.