Ann: Change in substantial holding from CBA, page-36

Names little
In my view, nothing is going to move forward (beyond the feasibility stage) in Tanzania given the fairly significant changes over the last 12 months.

I'm no expert, but from what I've read, the key issues that the miners will be grappling with:
- Govt gets a 16% share
- 30% of the issued capital of the mine needs to be listed on the local exchange
- local services for legal, insurance and banking (when local companies don't have the expertise or capital to handle this to start with)

For the types of companies we are talking about (small miners), I can't see how they get the administrative expertise and the financial backing to manage all of that especially when some of the rules are WIP, and then in addition getting financing to build a mining operation.

I'm no expert in this industry (MNS is my one mining spec), but I'm not aware of a small miner progressing in Tanzania since the changes, and I can't see things moving forward unless (a) there is certainty from the govt of the rules, (b) there is a shortage of the product and (c) financiers/off-take partners willing to take the risk and added cost of operating in Tanzania.

All the miners should line up and say these rules are unworkable, but a simple royalty is likely to get siphoned off by corruption somewhere, so I understand the govt wanting to build a local industry around their mineral wealth.

Anyway hope there is some progress so all miners can move forward, but at this stage, I'm not hopeful