EcoGraf says Epanko Graphite Mine to operate under Equator Principles

08Jan 2021
Correspondent
Morogoro
The Guardian
EcoGraf says Epanko Graphite Mine to operate under Equator Principles

A proposed U$60 million Epanko Graphite Mine in Ulanga District of Morogoro Region will operate under strict global environmental standards christened, ‘Equator Principles.’

An illustration of EcoGraf’s battery graphite manufacturing facility at Kwinana in Australia.

In a recent reports, Australian based EcoGraf Limited is making progress towards securing a senior  debt  financing for Epanko Graphite Mine with positive feedback from a presentation of the KfW IPEX-Bank debt financing proposal to the government in August last year. The Australian company’s local subsidiary which runs Epanko is TanzGraf.

The company which seeks to manufacture battery components in Australia for electric vehicles global market, further stated that the government’s due diligence processes have commenced with a view to preparing an internal submission for formal approval.

“Although the year has been challenged by the major disruptions caused by Covid19, the company has made significant progress advancing the debt financing for both developments,” said EcoGraf Managing Director, Andrew Spinks.

Spinks added, “We are introducing a third pillar of value through the innovation of utilising the company’s purification process to recover carbon anode material. Our management team is working hard to secure a combined debt financing of U$95m which will transform the company’s prospects.”

He further noted that the value proposition of recycling strategy, combined with the vertically integrated business developments using the company’s proprietary purification process is significant and more importantly matches the new European Union legislative changes.

”The board and management would like to take the opportunity to wish all shareholders a safe Christmas and looks forward to advancing the company’s development in the New Year,” Spinks assured.

Meanwhile EcoGraf Limited said battery graphite manufacturing facility is making encouraging progress in  relation to  securing  approvals for  a  US$35 million debt funding arrangement for the new Kwinana development in Australia.

The company said a development report, independent market study,  updated financial model,  feasibility  and  engineering  studies  have been  provided  for  lender analysis and  EcoGraf is  working  with  the  lenders  through the approval process.

“In parallel,  work  is  being  undertaken  to  finalise  the  EPC  contract, feedstock  supply  contract, operations  and  maintenance  arrangements  and  the  early  works  program  that  will  facilitate commencement of the detailed engineering design works,” the company said in its report dated December 2020.

The report said EcoGraf also remains  confident  of  finalising  further  sales  and  offtake  arrangements  as discussions advance with existing customers in Europe and Asia. The  proposed  20,000  tonne  per  annum  facility  will  manufacture  battery  anode  products  for export  to  Asia,  Europe  and North  America  using  a  superior,  environmentally  responsible purification  technology  to  provide  customers  with  sustainably  produced,  high  performance battery anode graphite, the company stated.

A  proposal  is  being  finalised  to  undertake  engineering  design works for  a  containerised  pilot plant supported by the recent positive results of up to 99.8 percent carbon achieved during testing with potential European customers on the recovery of high purity carbon anode material from battery black mass.