EcoGraf (ASX: EGR; Deutschland: FMK) details its growth plans for the Epanko Graphite Project in Tanzania! A new expansion study, as released after market close in Australia, outlines a phased expansion of production to up to 390,000 tonnes (!) of concentrate per year to supply raw material to the planned EcoGraf HFfree® purification plants (free of highly toxic hydrofluoric acid) in Europe, North America, and Asia.
The company emphasizes an integrated approach: Fine graphite concentrate from Epanko will first be formed into battery anode precursor in Tanzania and then processed into high-purity Battery Anode Material (BAM) at HFfree® facilities. Für die Finanzierung der ersten Phase über 73.000 tpa soll die KfW IPEX-Bank bis zu 105 Mio. US-Dollar an Senior Debt unter dem deutschen UFK-Programm arrangieren; ein unabhängiger Ingenieurbericht steht als Meilenstein in diesem Prozess an.
EcoGraf: Production Expansion from 73,000 to 390,000 Tonnes of Concentrate Planned
EcoGraf’s expansion study examines three development phases based on the existing mineral resource and shared infrastructure. Starting with Phase 1 at 73,000 tpa, further stages to 130,000 tpa (Phase 2) and two additional plants, each with 130,000 tpa (Phases 3 and 4), are planned. This would result in a phased ramp-up to a total of 390,000 tpa within approximately ten years. The expansions are located within the existing Special Mining Licence; the continuous ore body model of the Epanko deposit serves as the geological basis.
Phase 2 is designed as a duplication of the first plant at the current location – offering advantages in spare parts, training, and operational procedures. Phase 3 is planned for the southern end of the western ore body; Phase 4 will then duplicate this capacity. In the initial years of each stage, higher-throughput oxide ore processing is planned, followed later by a mixture of oxide and fresh material.
The Phase 1 and Phase 2 plants are each designed for 850,000 tpa of oxide ore and include crushing/screening, milling, flotation, filtration, handling, reagents, tailings management, and power and water supply. Concentrate from Phases 3 and 4 will be transported via pipeline to the Phase 1 section, where drying and loading will be centrally consolidated. According to studies, the valley offers sufficient capacity for tailings – many times the volume required for the project.
Downstream Strategy: EcoGraf HFfree® in USA and Europe
Central to EcoGraf’s strategy is the establishment of commercial HFfree® purification plants in key battery clusters. For an initial plant in the USA with 25,000 tpa of battery anode material, the company provides the following key figures: Investment costs (incl. reserve) of $95 million, a pre-tax NPV10 of $282 million, an IRR of 42%, and an annual EBITDA of $42 million with process costs of $478 per tonne. A comparable purification plant is planned for Europe – with a focus on Germany. Preliminary plans indicate lower investment costs and slightly higher operating costs compared to the USA, resulting in similar key figures overall.
In parallel, EcoGraf reports discussions regarding funding in the EU and the USA. Positive feedback has been received on a white paper submission to the US Department of Defense regarding potential funding of $76.3 million. The supply chain is intended to include several hubs: shaping of the fine concentrate in a midstream plant in Tanzania, subsequent HFfree® purification in the target markets, and supply to manufacturers of lithium-ion batteries (EV and stationary storage). This positions EcoGraf as a provider of a hydrofluoric acid-free processing solution, distinct from traditional, largely China-centric value chains.
Resource Base: Epanko Quality and Resource Support EcoGraf
According to the resource estimate, the Epanko Project’s resource base totals 290.8 million tonnes at 7.2% TGC (Total Graphitic Carbon), of which 88.0 million tonnes are in the “Measured” and “Indicated” categories at 7.6% TGC (6.71 million tonnes of contained graphite). The initial decade of the ramp-up addressed by the study is to be entirely supplied from tonnages in the Measured and Indicated categories; furthermore, EcoGraf sees conversion and expansion potential, including along untested southern sections of the Western Zone. Channel sampling there yielded high grades (e.g., 23 m at 20.79% TGC and 33 m at 19.69% TGC), indicating locally increased metamorphism and correspondingly crystalline material with low impurities.
From a process perspective, EcoGraf highlights a high concentrate quality of 96–98% C and a demonstrated process recovery of 94.7%. The low stripping ratio (0.3:1) and a flake content of >150 μm of 63% are cited as further characteristics. From the company’s perspective, a higher initial quality reduces the expenses in downstream purification – an advantage for the HFfree® processes for producing Battery Anode Material. In a technical comparison, EcoGraf highlights differences from common feedstocks, such as lower silica content and higher crystallinity, which can influence purification yields.
Logistics, Market Environment, and Outlook
For Phase 1, the transport of packaged concentrate by truck for approximately 70 km to Ifakara and further to Dar es Salaam port is planned; from Phase 2 onwards, the Ifakara–port section is to be carried out by rail. EcoGraf’s planned production development is set against the backdrop of an expected increase in graphite demand from the second half of the decade – driven by its use in lithium-ion battery anodes, a higher proportion of natural graphite in mixtures, and issues of supply security. Export controls, tariffs, and geopolitical factors have further intensified the discussion about alternative supply chains.
With the Epanko expansion and the HFfree® downstream plans, EcoGraf addresses the demand for high-purity graphite outside established Chinese structures. Whether the model is realized at the outlined pace depends on permits, financing, plant construction, and market development. However, the key figures now presented and the phased expansion path provide a structured overview of the next steps – from 73,000 tpa in Phase 1 to a potential total output of 390,000 tpa, aligned with the capacities of the planned HFfree® hubs in the USA, Germany/Europe, and Asia.
