Extract

TanzGraphite Natural Graphite Projects

The Company’s natural flake graphite business is focussed on development of the long-life, high quality Epanko and Merelani-Arusha Graphite Projects in Tanzania.

In April 2023, EcoGraf signed a framework agreement with the Tanzanian Government for the Epanko Graphite project, which will provide supply diversity and scale-up optionality.


Natural flake graphite supply & demand

Lithium-ion batteries have become the dominant battery technology for use in electric vehicles (EV). This dominance is expected to continue given the significant investment and expanding capacity of lithium-ion gigafactories in Asia, North America and Europe.

Increased demand for alternative natural battery anode supply chains and greater recycling has resulted from continued government policies, regulations and EV manufacturers environmental and social governance. Battery and EV manufacturers are also recognising the environmental benefits of natural graphite over synthetic graphite, which is resulting in increased forecast use of natural graphite in the battery anode, increasing from 35% currently, to over 50% by 2030.

EV adoption rates are forecast to increase demand for lithium-ion batteries with BMI  forecasting the market to grow at a CAGR of 23.9% over the next 10 years.

Epanko Project

Extensive work has been undertaken at Epanko to establish a development- ready new graphite mine, including:

  • Bankable Feasibility Study (BFS) demonstrating a highly attractive development opportunity
  • Granted mining licence and environmental approvals
  • Independent Engineer’s Review by SRK Consulting on behalf of lenders, confirming technical aspects of the proposed development and that the Equator Principles social and environmental planning satisfies International Finance Corporation Performance Standards and World Bank Group Environmental, Health and Safety Guidelines
  • Flake graphite sales for key markets in Europe and Asia
  • Target cost EPC arrangements for construction of Epanko with GR Engineering, and
  • Project financing program involving international and Tanzanian financial institutions.

Epanko Framework Agreement

In April 2023, EcoGraf signed a framework agreement with the Tanzanian Government for the Epanko Graphite project. The new joint venture entity, Duma TanzGraphite has been incorporated to develop and operate Epanko, with an 84% interest held by EcoGraf and a 16% free-carried interest held by the Government.

EcoGraf’s presentation to the Government on its Tanzanian graphite strategy, included the future expansion of production at Epanko to support growth in battery graphite demand, the development of its Merelani-Arusha Graphite Project and an evaluation of the potential for in-country mechanical shaping facilities to create a global Tanzanian graphite supply base.

Exceptional geology provides superior battery performance and value-in-use

This uniquely positions EcoGraf’s integrated graphite business to support increasing demand for high purity graphite products, with flake graphite mining operations in Tanzania supplying feedstock for the Company’s HFfree battery anode material facilities and large and jumbo flake graphite to be exported to high value industrial markets.

In response to increasing demand for graphite, EcoGraf™ has commenced an evaluation of expansion options for Epanko to identify the most efficient pathway to scale-up production significantly beyond its initial 60,000tpa capacity to supply the high growth battery graphite market.

The quality of Epanko graphite is the result of two key geological advantages, a calc silicate dominant host gangue mineral with very little deleterious elements and very high crystallinity caused by extremely high metamorphic pressure and temperature. Flake graphite crystallinity provides its physical and industrial properties, with the favourable Epanko mineralogy resulting in improved recoveries, product quality and economic efficiency.

As a result of these geological features, Epanko flake graphite is easily liberated using a low-cost, efficient flotation process to produce high quality graphite products, supported by the Company’s large scale 200 tonne bulk sample program that has outperformed the Ore Reserve block model grades, confirming the integrity of the model and demonstrating the robust nature and significant upside of the Epanko Mineral Resource Estimate undertaken by CSA Global.

Exceptional geology provides superior performance

Key environmental aspects

The Project has strong economics and will provide inter-generational economic and social benefits for the regional community near Mahenge in Tanzania and will support Tanzania’s positive industrialisation progress.

Epanko is expected to operate for 40+ years and in that time is forecast to deliver direct economic benefits of over US$3 billion to Tanzania via employment, procurement, royalties, taxes and dividends. Over 95% of the 300 permanent staff will be Tanzanian, with an estimated 4,500 indirect jobs to be supported by the Epanko operation.

  • Completion of the Epanko bankable feasibility study in accordance with the Equator Principles (an internationally recognised risk management framework, adopted by financial institutions, for determining, assessing and managing environmental and social risk in projects)
  • Independent review by SRK Consulting confirming that environment and social planning satisfies the International Finance Corporation Performance Standards and the World Bank Group Environmental, Health and Safety Guidelines
  • Funding support from German Government development bank KfW IPEX-Bank with loan arrangements linked to environmental and social performance, and
  • Power sourced through sustainable hydro-facilities.

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