EcoGraf Limited (ASX: EGR, FSE: FMK, WKN: A2PW0M) has received a special life-of-mine licence from the Tanzanian government. This is an important milestone in the development of the Epanko Graphite Project and an essential prerequisite for the financing process. This brings one of the largest and most exciting graphite projects in Africa a decisive step closer to the start of production.
The licence was granted by the Tanzanian government on 3 March 2025 for a period of 25 years. Following the signing of the Epanko Framework Agreement, the government in Dar es Salaam has undertaken a detailed assessment of the Epanko development. EcoGraf would particularly like to thank the President of Tanzania, Dr Samia Suluhu Hassan, and the Minister of Minerals, Hon Anthony Mavunde, for their active support and for granting the special licence 733/2025.
The new special licence will be sufficient to enable multi-generational operations at the project with an increased production capacity. The licence is also sufficiently broad to fully cover the updated Epanko Mineral Resource of 290.8 million tonnes at 7.2% TGC. The resource is currently split into 32.3 million tonnes in the measured category, 55.7 million tonnes in the indicated category and a further 202.8 million tonnes in the inferred category.
EcoGraf and its Epanko Project stand out in the industry
The Epanko Project represents one of the largest development-ready graphite mineral resources in Africa. EcoGraf leads the industry with a high 82% of its total Ore Reserve classified as Proven. For investors and lenders, this is a significant factor that increases confidence in metallurgical factors such as process yields, flake size and concentrate grades. These are key factors for pricing.
EcoGraf already has plans in place to gradually increase production to keep pace with the projected growth in demand for graphite. A particular focus is the expected increase in demand for natural graphite anode material for electric mobility and clean energy storage. These expansion plans were recently presented to a wider audience at the Tanzania Mining and Investment Conference in Dar es Salaam.
The special licence puts the financing process on a firm footing
The significance of this step should not be underestimated, as the special life-of-mine licence is an important regulatory approval. It not only paves the way for the next steps in the development of the Epanko project, but also provides the certainty that creditors and borrowers urgently need in order to make informed decisions in the upcoming financing process.
Negotiations are initially focusing on the first phase of the Epanko project development, which includes the construction of a 73,000 tonne per annum graphite processing plant. EcoGraf has appointed KfW IPEX-Bank to provide the required advisory, structuring and arranging services to obtain an import credit guarantee (IC Guarantee) and to arrange a senior loan facility (IC Tranche) of up to US$105 million for the construction of the Epanko Graphite Project in Tanzania.
The increase in the mining area is also encouraging, almost doubling from 9.6 km² to 18.9 km². The expanded area covered by the special licence encompasses a continuous strike length of 5.5 kilometres of the Epanko graphite deposit. The ore body here is on average 200 metres wide.
The Epanko Project will be one of the first graphite mining and processing operations in Africa and the first in Tanzania. This is an extremely exciting prospect for both the shareholders of EcoGraf and the local communities, and one that provides great confidence for the future.
