Kibaran said it had received a letter stating the commission would renew the licence when it expired for a further 10 years, provided Section 53 requirements of its mining act were fulfilled.

The company said the guarantee letter was a major requirement of lenders.

"This letter of guarantee for its renewal is an important demonstration of government support for the project and formed part of broader discussions that are currently taking place with the commission," Kibaran said.

It said the current discussions were to finalise the remaining requirements of the lenders so Epanko's construction could proceed as soon as possible.

At a presentation in Perth last week, the company said it had German and Australian project financing only awaiting Tanzanian government clearance to facilitate banking requirements.

Epanko has a preproduction cost of US$89 million and is forecast to produce 60,000tpa of natural flake graphite.

Kibaran is aiming to also produce spherical graphite at a downstream processing facility in Germany.

It has pilot plant test work underway that has gained funding from the German government.

Tanzania's mining commission was formed this year as part of sweeping changes to regulations in the country.

ASX-listed Walkabout Resources was awarded a mining licence by the Tanzanian government for the Lindi Jumbo graphite project last week, saying it could now progress project funding options.

Kibaran had A$2.9 million in cash at the end of June.

Its shares were up 3.2% in morning trade to 16c, capitalising it at $42.7 million.