AuKing Mining Ltd (ASX:AKN) is hopeful for a swift resolution to a competing licences issue at Manyoni Uranium Project in central Tanzania, after a recent meeting took place in Dodoma with senior Ministry of Minerals officials.
The Tanzanian Mining Commission was expected to release a decision in June in relation to AuKing’s two paid-up Manyoni prospecting licences, which it had revoked.
Paid licences revoked
In February last year, the company received notification that the two licences had been revoked by the Commission due to a system malfunction that led to double allocation of mineral rights over the same areas.
There had been no prior indication to AuKing that such revocation notices would be issued.
Another Tanzanian company unrelated to AuKing or 92U, Galo Capital, was then issued with the prospecting licences on February 3, 2023, over the same area covered by the two AuKing Manyoni licences.
On Monday, June 24, chair Peter Tighe and managing director Paul Williams presented AuKing’s position in relation to these licences at a meeting in Dodoma, at the request of senior Ministry of Minerals officials.
At this meeting, AuKing’s representatives were told that the Ministry was disappointed that neither AuKing’s appeal materials, lodged in March 2023, nor any subsequent representations to the Ministry/Mining Commission had received a formal response.
AuKing's representatives expressed concerns about the statutory basis the Mining Commission relied on to revoke the two Manyoni licences. They noted a desire to have the matter resolved as amicably as possible even though competing licences over the same land areas had been issued to Galo Capital.
The senior Ministry officials advised that they would liaise with Galo Capital as part of an effort to secure a resolution of the matter as soon as possible.
Hope for a resolution
“We are pleased that this matter now has the attention of senior officials within the Tanzanian Ministry of Minerals," Williams said.
“AuKing was originally expecting a report from the Mining Commission by the end of June so we do not know how our Dodoma meeting might affect that decision time frame.
“However, the meeting at least afforded AuKing a genuine opportunity to present its concerns.”
“After the passing of 16 months since two important AuKing licences at Manyoni were revoked by the Mining Commission we are now in a position where AuKing’s case has been clearly stated, the Tanzanian Ministry understands how serious the matter is regarded by AuKing management and we hope there’s a resolution in the near future.”
On January 31 last year, AuKing announced completion of its acquisition of 92U Tanzania Ltd after that company was granted 12 prospecting licences in Tanzania on January 26, 2023, including five that covered the Manyoni Uranium Project.
A large portion of the historical Manyoni uranium resource estimate was contained within two of the 92U prospecting licences – 12193/2023 and 12194/2023.
AuKing has not yet requested a refund by the Commission of the applicable licence fees paid by AuKing to originally secure grant of the Manyoni licences.
The company will continue to update the market as this issue progresses.