Australian firm expects to earn $126m from Tanzanian graphite project

01Aug 2018
By Financial Times Reporter
Financial Times
Australian firm expects to earn $126m from Tanzanian graphite project

TANZANIA is set to become an important graphite producer, with Australian company Volt Resources expected to earn $126 million (close to 300bn/-) from its project in the southern parts of the country.

The list of uses for graphite is extensive. For centuries it has been indispensable for teaching children how to write with pencils. Later it found a multitude of industrial uses, most notably as a lubricant. Over recent years the growing market in electric vehicles (EV), mobile phones, smartphones and tablets, has led to staggering growth in the use of graphite in batteries.

Analysts predict that global demand for graphite to power lithium-ion batteries will explode by over 200 per cent in the next four years driven by the EV surge and energy storage alone.

Flake graphite company Volt Resources said it will churn out an EBITDA of just over $17.5 million per annum from the small-scale, Stage 1 development of its Bunyu graphite project in Tanzania.

EBITDA or Earnings Before Interest, Tax, Depreciation, Amortization is a company's profits before any of these net deductions are made.

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