In its annual results for the year ending June 2021, Australian based EcoGraf said the project will also make a long-term, inter-generational contribution to economic, industrial and social development within Tanzania.”It is expected to operate for over 40 years, during which time it is forecast to directly contribute over US$3 billion to Tanzania through local employment, procurement, royalties, taxes and dividends,” the company said.
It further added that over 95 percent of the 300 permanent staff will be Tanzanian, with an estimated 4,500 indirect jobs to be supported by the operation. Describing the Epanko Graphite Project as being highly profitable, EcoGraf which operates locally through its subsidiary, TanzGraf said the project is forecast to produce 60,000 metric tonnes of natural flake graphite products each year. Natural flake graphite is used in the manufacturing of electric vehicles.
“Extensive work has been completed at Epanko to establish a development ready new graphite mine, including: Completion of a bankable feasibility study that demonstrates a highly attractive development opportunity with a modest investment of U$89 million and a robust business case, generating annual gross revenue of U$44.5 million,” EcoGraf’s annual results stated.
The report said with the government granting of a mining licence and environmental approvals plus the comprehensive independent engineer’s review by SRK Consulting on behalf of lenders which confirmed technical aspects of the proposed development and that the Equator Principles, the project is also compliant of International Finance Corporation performance standards and World Bank Group Environmental, Health and Safety Guidelines.
The Australian investor has already secured flake graphite markets in key markets in Asia through Sojitz Corporation and Europe through Thyssenkrupp which is a large European graphite trading group.
“EcoGraf continues to progress debt financing arrangements for construction of the Epanko Graphite Project that have been developed with German Government development bank KfW IPEX-Bank,” the report noted.