EcoGraf (ASX: EGR) has updated a bankable feasibility study (BFS) for its Epanko graphite discovery and midstream mechanical shaping facility in Tanzania, substantially enhancing and de-risking the project.
The updates involved an intensive program of technical due diligence to optimise the project for current market demand centred around changes in regulations relating to the storage of tailings.
This follows the 2020 release of a global industry standard on tailings management.
After the completion of the project’s environmental and social management planning, the new study ensures the supporting impact assessments conform to relevant Tanzanian legislation, International Finance Corporation performance standards, and World Bank Group environmental health and safety guidelines.
Largest Graphite Resource
The final BFS outlines a US$516 million Stage 1 development with a 21.7% increased throughput of 73,000 tonnes per annum (from an initial 60,000tpa) utilising an 850,000tpa crushing, grinding, and flotation plant.
It is based on an updated ore reserve of 16.7 million tonnes grading 8.2 % total graphite carbon (TGC) (7.1Mt proven and 9.6Mt probable) from Africa’s largest graphite resource of 290.8Mt at 7.2 % TGC for 21Mt contained mineral.
The resource size allows mining to exclusively focus on oxide ore for the first 15 years, bringing with it various advantages including greater throughput, lower mining costs and simpler tailings handling.
Crucially for project financing and debt repayment, the first 10 years of production will be covered by reserves comprised of 57% proved material, with the remaining 43% probable.
Low-Cost Sustainable Solution
Epanko – which will incorporate EcoGraf’s patented hydrofluoric acid free purification (HFfree) technology – is expected to deliver one of the industry’s lowest cost and sustainable solutions.
The project benefits from its proximity to an established transport corridor and access to grid power, and its development is fully covered under the current single Special Mining Licence.
The HFfree facility is based on an initial capital investment of US$95m for a pre-tax net present value of US$282m and a 42% internal rate of return.
It positions EcoGraf to become Africa’s largest graphite producer with future expansions tied to downstream HFfree facilities in North America, Europe, and Asia to meet growing demand from the EV and lithium-ion battery sectors.
World-Class Graphite Project
Managing director Andrew Spinks said the completion of one of the most rigorous technical work programs had cemented Epanko as a world-class graphite project.
“We are now positioned to take advantage of a forecast growth in graphite demand on the back of the electric vehicle and energy storage battery boom,” he said.
“This is the result of tremendous teamwork from our board, management team and consultants and I wish to take the opportunity to thank them as we have established an industry-leading, low-cost, vertically-integrated HFfree battery anode business.”
He said the company had commenced planning for a Stage 2 expansion to 130,000tpa and was in downstream development discussions with potential offtake partners.
There is also the potential for three further stages to take production to 390,000tpa over the next decade, on the back of rising battery anode demand from new global supply chains.
