Former South32 manager appointed project manager
At the start of the new year, Australia’s EcoGraf (ASX EGR / WKN A2PW0M) has provided an update on its Epanko graphite project in Tanzania. According to the company, the review of the special mining license (SML) applied for for the project made progress this month, meaning that the government of the East African country is now in the process of completing the internal approval procedures. EcoGraf therefore expects the SML to be granted by the Mining Commission before the end of the quarter.
In 2024, EcoGraf once again conducted extensive surveys to update the Epanko action plan for the local communities in the project area and then prepared compensation plans and evaluation reports in accordance with IFC performance standards and submitted them to the Chief Government Valuer for approval. Among other things, the Australians were able to complete and hand over an Epanko dispensary to the community as part of their commitment to the villagers who have to travel to the nearby town of Mahenge for medical care.
In addition, work was carried out on the access road to the mine in collaboration with Tanzania’s Rural and Urban Roads Agency (TARURA) to improve access to the site, even during the annual rainy season.
Former South32 manager appointed project manager for next Epanko development phase
As EcoGraf is confident that the next development phase of Epanko will not be too long in coming, they have already appointed the expert Clayton Hewetson as “General Manager – Project Development”. Mr. Hewetson is a project manager and qualified civil engineer with more than 30 years of experience in project development and execution, project organization and project offices in Australia, Africa and Indonesia.
He has worked with a variety of commodities and in a number of senior management positions for the international mining industry and other project companies and has a successful track record in both brownfield and greenfield projects throughout the project lifecycle. Mr. Hewetson has successfully developed and executed numerous remote projects in some of the most logistically challenging regions of the world.
His most recent roles include National Director – Major Projects, Australia at South32, an Australian resources group with a market capitalization of almost A$16 billion, where he was responsible for the delivery of a national portfolio of expansion, growth, decarbonization and major sustainable projects and programs for the company’s assets. The portfolio was valued at A$7 billion over a ten year period. Prior to South32, Mr. Hewetson was also Manager – Expansion Projects at Rio Tinto Iron Ore.
Project financing
EcoGraf had already commissioned KfW IPEX-Bank some time ago to arrange import credit cover (UFK guarantee) and a senior credit facility (UFK tranche) of up to USD 105 million for Epanko via the UFK program (Untied Loan Guarantee). Subject to meeting defined due diligence criteria, a loan guarantee in the name of the Federal Republic of Germany with a long-term maturity may be granted under this program, which would provide increased financial flexibility for the Epanko project during the start-up and operation of the first phase.
In the meantime, there has already been non-binding confirmation from the Federal Government’s Interministerial Committee that Epanko is in principle eligible for a UFK guarantee under the UFK program. However, an independent expert opinion on the project and the proposed financing agreements must now be prepared in order to obtain provisional approval for a binding offer of cover.
EcoGraf has thus focused in recent months on completing several pre-development programs to support the lenders’ due diligence processes and the commissioning of the independent appraisal. These included:
- • – Mine planning to optimize the expanded ore reserve estimate;
– Analysis of additional geotechnical drilling data to confirm designs for the tailings storage facility (TSF), water storage dam (WSD) and process plant;
– TSF and WSD rupture studies and design updates in accordance with the Global Industry Standard on Tailings Management;
– Updated environmental studies, environmental impact assessments and management plans in accordance with International Finance Corporation (IFC) Performance Standards, Equator Principles and World Bank Environmental, Health and Safety Guidelines;
– Updated and optimized project construction schedules, cost estimates and risk management plans; and
– Project implementation planning, preparation for EPCM tenders and government approvals.
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