The unexpected decision halts Volt’s flagship Tanzanian development, with the company set to appeal amid broader licence scrutiny across the country’s graphite sector.
Volt Resources Limited has been formally notified by Tanzania’s Ministry of Minerals that mining licences ML 591/2018 and ML 592/2018 for the Bunyu Graphite Project will be cancelled, in a decision the company said it was extremely disappointed by and one the Board does not accept was warranted.
Volt, whose Tanzanian subsidiary Volt Graphite Tanzania plc holds the licences, said it will commence assessing the legal steps available to it, including appealing the Mining Commission’s decision through the relevant Tanzanian court and examining other remedies that may be available under international law.
Bunyu is one of Tanzania’s largest reported graphite projects and the centrepiece of Volt’s upstream strategy, with a binding offtake in place with China’s Qingdao Baixing Graphite.
The cancellation also comes amid wider Tanzanian government scrutiny of graphite licences and development timelines, adding to the sovereign risk investors must weigh in an already difficult funding market for the sector.
The Announcement
Volt said it and its subsidiaries have invested significant time and resources over a substantial period in exploration, feasibility studies, approvals, offtake agreements, community engagement and broader development activities at Bunyu, in south-east Tanzania.
The company pointed to recent progress across three fronts:
- A binding term sheet executed in December 2025 with Dubai-based Unbounded Opportunities Fund (UOF) for funding and development of the project, including a proposed US$11.1 million equity investment subject to conditions.
- A February 2026 variation of its binding coarse flake offtake agreement with Qingdao Baixing Graphite Co., Ltd, increasing contracted annual sales volumes to 20,000 tonnes in years 1 and 2 and 90,000 tonnes in years 3 to 5.
- Near completion of office and storage facilities at Namangale, alongside community investment in the Lindi region under its social responsibility programme.
Volt had also recently submitted to the government a schedule of early stage development activities for 2026 and early 2027, covering resettlement and compensation, secondary approvals, access road upgrades, borefield establishment, FEED testwork and initial site preparation.
Volt said that due to the unresolved status of the mining licences, combined with some unresolved differences with UOF on additional terms and conditions, it elected to let the agreement terminate.
The decision to cancel the Bunyu mining licences is very disappointing given the significant progress the Company has made in securing funding, strengthening offtake arrangements and advancing early works on site, as well as the substantial investment already made in Tanzania over many years. We will pursue the available legal mechanisms to seek a solution that recognises the strategic importance of Bunyu for Tanzania and Volt, while maintaining our focus on progressing the rest of our graphite and carbon materials strategy. The Board of Volt Resources
What Comes Next
- Volt will assess its legal options, including an appeal of the Mining Commission’s decision to the relevant Tanzanian court, appropriate relief in relation to the cancellations, and remedies potentially available under international law.
- The company will work with holders of the convertible note facilities secured against the Bunyu project to restructure the security arrangements, with no final terms agreed at this stage.
- Volt’s securities remain suspended from quotation on the ASX pending further announcement, with the company working towards satisfying the requirements to lift the suspension.
Volt cautioned that there can be no assurance any appeal process or further engagement with Tanzanian authorities will be successful, or that the Bunyu licences will be reinstated. It added that nothing in the announcement constitutes a waiver of any legal rights, and that the Board does not believe the cancellation affects its ability to satisfy ASX Listing Rule 12.2 on financial condition.
Background
Volt Resources, which trades on the ASX under the symbol VRC, describes itself as a critical minerals and advanced materials company, an established graphite producer and advanced materials developer.
Beyond Bunyu, the company holds a 70% interest in the Zavalievsky Graphite business in Ukraine, which it said continues to produce graphite concentrate and high purity graphite despite challenging conditions in the country. Its wholly-owned US subsidiary, Volt Energy Materials LLC, is progressing a definitive feasibility study for a high purity graphite refinery in Alabama, and the company is developing supply pathways for the US strategy using Zavalievsky and other third-party ex-China feedstock.
Volt also holds lithium-borate licence applications in Serbia and three gold projects in Guinea, and said it continues to assess other project and corporate opportunities across critical minerals and advanced materials.
Primary source: Volt Resources Limited, “Update on Bunyu Mining Licences”, ASX announcement, 3 August 2026.
Supporting references:
• Volt Resources corporate website — https://www.voltresources.com
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