EcoGraf Limited (ASX: EGR; Germany: FMK) has announced the completion of an updated Bankable Feasibility Study (BFS) for its Epanko Graphite Project in Tanzania. The study is now based on an annual production of 73,000 tonnes of graphite concentrate for the first 15 years and is supported by an updated Ore Reserve of 16.7 million tonnes at 8.2% Total Graphitic Carbon (TGC).
The estimated reserve consists of 7.1 million tonnes in the “Proven” category and 9.6 million tonnes in the “Probable” category. EcoGraf highlights that the BFS was prepared in parallel with an independent technical review, thereby addressing key requirements of international project financing.
As a result, EcoGraf’s study for Epanko shows a Net Present Value or NPV (10% discount rate, pre-tax) of USD 516 million and an Internal Rate of Return (IRR) of 31.1%. According to the announcement, the financial assumptions are based on a Life-of-Mine “basket price” of USD 1,746 per tonne. For construction and commissioning, the study cites USD 181.2 million in construction and establishment costs (real 2025) and USD 18.1 million for the Resettlement Action Plan (RAP), each including contingency reserves. The annual EBITDA (real 2025) is stated at USD 85.7 million!
EcoGraf and Epanko: Study Confirms Higher Throughput and Updated Reserve Base
A key technical point of the updated BFS is the confirmation of a 21.7% higher plant throughput, which increases planned production to 73,000 tpa. EcoGraf links this to the expectation of rising demand for natural graphite, particularly from the battery industry. The BFS is intended to represent an operating model that supports the first production phase over 15 years while simultaneously creating a foundation for later expansion stages.
The study was accompanied by an Independent Engineers Review (IER). According to EcoGraf, it was determined that the technical workstreams have been significantly advanced to meet international project financing standards—including the requirements of the Global Industry Standard on Tailings Management (GISTM). EcoGraf also refers to the completion of environmental and social management planning. The underlying impact analyses are designed to comply with Tanzanian law as well as IFC Performance Standards and the World Bank Group’s Environmental, Health, and Safety Guidelines.
For the project, EcoGraf also highlights infrastructural framework conditions: Epanko has grid power and is located near an established transport corridor for market access, which, according to the announcement, was supported and co-financed by the European Commission. Regarding permitting, the company mentions a single Special Mining Licence (SML) that fully covers the current project development.
Financing and Marketing: KfW-led and Offtake Agreements up to 40,000 Tonnes p.a.
On the financing side, EcoGraf reports that a debt financing program is at an advanced stage and is being progressed under the leadership of KfW IPEX-Bank. The announcement does not mention specific terms but describes the status as an important step in transitioning the capital requirements from the BFS into a financing setup.
In parallel, EcoGraf describes an implemented marketing strategy: binding offtake and “in-principle” sales agreements have been concluded, which together cover 40,000 tpa of the planned production. EcoGraf names existing customer relationships as partners, as well as the Germany-based ThyssenKrupp Metallurgical Products GmbH. Additionally, the company expects a further 20,000 tpa to transition into a binding sales and offtake structure once Epanko is in production, which could also support a later expansion.
EcoGraf is positioning Epanko as a building block for an ex-China oriented graphite market. The company points to the growing importance of “Western-aligned” supply chains and notes as context that China announced additional export restrictions for a range of dual-use goods to Japan last month—and that graphite is precisely one of these dual-use goods. For purchasing industries that rely on reliable supply chains and predictable qualities, such market fragmentation can influence price mechanics and contract design.
Expansion, Downstream Plans, and Demand Outlook from 2026
Beyond the initial development, EcoGraf presents an outlook for a multi-stage growth scenario. An expansion study envisages potentially three further expansion stages that could increase production to up to 390,000 tpa within 10 years. The company cites rising demand for battery anode material and new global supply chains outside China as drivers. Specifically, work is already underway on the planning for Epanko Phase 2, targeting a capacity of 130,000 tpa; according to EcoGraf, these steps are also to be supported by its own downstream development discussions with potential offtakers.
In its strategic positioning, EcoGraf links the Epanko expansion with planned HFfree® purification plants (downstream) in North America, Europe, and Asia. The goal is not only to produce concentrate but also to serve the requirements of the battery and end-customer markets in downstream processing steps.
Managing Director Andrew Spinks explains in the announcement that the combination of the resource base and technical due diligence positions Epanko as a project “for development.” At the same time, EcoGraf emphasizes that the expected demand from electromobility and energy storage could lead the natural graphite market into a phase from 2026 where demand exceeds projected supply.
With the updated BFS, the aforementioned financing and marketing components, and the outlined expansion path, EcoGraf places the next steps for Epanko into a clear framework: initial operational development with 73,000 tpa, flanked by offtake structures and financing led by KfW IPEX-Bank—and prospectively, expansion along a multi-stage capacity plan closely linked to downstream projects.
