EcoGraf seeking govt approval for U$60m loan to finance Epanko Graphit

15Oct 2020
The Guardian Reporter
Dar es Salaam
The Guardian
EcoGraf seeking govt approval for U$60m loan to finance Epanko Graphit

AN electric vehicle battery manufacturing company, EcoGraf Limited of Australia is waiting for the government’s approval of a U$60 million loan proposal developed jointly with Germany’s KfW IPEX-Bank to finance Epanko Graphite Mine in Mahenge District of Morogoro Region.

Graphite mining technicians at Epanko Mine.

In an annual report for 2020, the Australian based company said through its local subsidiary, TanzGraphite, it has also made a number of commitments to support government efforts to industrialise such as to operate on-site certified laboratory and secured product warehouse

“TanzGraphite has established a framework for on-going Mining Commission reporting and compliance meetings progressing with relevant government ministries in Tanzania to advance the U$60 million debt financing proposal made to the government for the construction of the new Epanko Graphite Mine,” the report said.

The financing proposal was presented to the government in March 2020 with the aim of simplifying and fast-tracking the financing process. “Subject to the agreement with the Government of Tanzania, EcoGraf and KfW IPEX-Bank are ready to proceed to prepare formal loan documentation to enable the financing arrangements to be implemented,” the annual report stated.

The company which forecasts that the 60,000 metric tons per annum project will enable Treasury earn U$3 billion during its estimated 40 years lifespan which will greatly contribute towards Tanzania’s social economic development.

EcoGraf which plans to build lithium-ion batteries for electric cars in Australia has already secured markets in Asian. “EcoGraf’s preferred feedstocks, including Epanko material from the company’s development ready project in Tanzania, demonstrated superior performance against existing material used in the lithium-ion battery market,” the company added.

Results demonstrate the importance of battery graphite crystallinity which has a direct effect on battery performance factors such as power output, battery life and charging capability, the report pointed out.

“50 percent increase in production to 60,000tpa positions Epanko to be a major baseload supplier of high value graphite products to traditional and emerging graphite markets,” EcoGraf stated adding that low pre-production capital of U$88.9 million and low operating costs from Dar es Salaam Port at U$500/t free on-board.

In compliance with local content rules, the company said has submitted plans to Mining Commission indicating that, among other things, promising a 64 percent of economic return to the country; skills development and technology transfer in high growth battery energy market. “TanzGraphite bank accounts to be held in Tanzania.”

Top Stories