Volt Resources Challenges Tanzania’s Decision to Cancel Bunyu Graphite Mining Licences
Australian-listed Volt Resources is challenging the Tanzanian government’s decision to cancel the mining licences for its Bunyu Graphite Project, escalating uncertainty around one of the country’s major graphite developments.
Volt said it was “extremely disappointed” by the decision and is reviewing its options to challenge the cancellation.
The company maintains that it had been progressing the project and had secured key commercial and financing arrangements to support development.
The Bunyu project, located in southeast Tanzania, is considered one of the country’s significant graphite assets.
Volt has been working to advance the project towards production, with plans for an initial operation producing about 40,000 tonnes of graphite concentrate annually.
Government tightens mining oversight
The cancellation comes amid a broader government crackdown on inactive and non-compliant mining licences.
Tanzania cancelled 40 mineral exploration licences earlier in 2026, citing issues including failure to develop licensed areas and other regulatory breaches.
The government has said the measures are intended to prevent mineral-rich land from being held without development and to encourage faster investment and production.
Volt’s case is particularly significant because Bunyu is not simply an exploration asset. The company has already invested in advancing the project and secured arrangements intended to support its development.
Implications for Bunyu
The licence cancellation creates uncertainty over the project’s development timeline and could affect agreements linked to financing, construction and future graphite sales.
Graphite is increasingly regarded as a strategic mineral because of its use as a key component in lithium-ion battery anodes.
Tanzania has sought to position itself as an important supplier of graphite to international markets, making the development of projects such as Bunyu strategically important.
Volt’s challenge could therefore become an important test of how Tanzania balances stronger enforcement of mining regulations with its efforts to attract long-term investment into critical minerals.
For now, the future of the Bunyu project will depend on the outcome of Volt’s challenge and the government’s position on the company’s mining rights.
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