EcoGraf Limited (ASX: EGR, FSE: FMK, WKN: A2PW0M) has received a so-called ‘Life-of-Mine’ special license from the government in Tanzania. It represents an important milestone in the development of the Epanko Graphite Project and is a crucial prerequisite for the financing process. This brings one of the largest and most interesting graphite projects in Africa a decisive step closer to the start of production.
The license was granted by the Tanzanian government on March 3, 2025, for a period of 25 years. Following the signing of the Epanko Framework Agreement, the government in Dar es Salaam conducted a detailed evaluation of the Epanko development. EcoGraf particularly thanks the President of Tanzania, Dr. Samia Suluhu Hassan, and the Minister for Minerals, Hon Anthony Mavunde, for their active support and approval of the Special License 733/2025.
The new special license will be sufficient to enable operations on the project over several generations with expanded production capacity. The license is also broad enough to fully cover the updated Epanko mineral resource of 290.8 million tonnes at 7.2% TGC. Currently, the resource is distributed as 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 Significantly Within the Industry
The Epanko Project thus represents one of the largest development-ready graphite mineral resources in Africa. EcoGraf is an industry leader with this ore reserve, as a high 82% of the total ore reserves are 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 for a gradual increase in production to keep pace with the projected growing demand for graphite. The focus is particularly on the expected increasing need for natural graphite anode material for electric mobility and clean electrical energy storage. These expansion plans were recently presented to a broader audience at the Tanzanian Mining and Investment Conference in Dar es Salaam.
The Special License Puts the Financing Process on a Solid Foundation
The significance of this step should not be underestimated, as the Life-of-Mine special license 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 security that creditors and borrowers urgently need to make informed decisions in the upcoming financing process.
The negotiations initially focus on the measures of the first phase of the Epanko project development. This includes the construction of a graphite processing plant with an annual capacity of 73,000 tonnes. EcoGraf has commissioned KfW IPEX-Bank to provide the necessary advisory, structuring, and intermediary services to obtain import credit coverage (UFK coverage) and arrange a senior credit facility (UFK tranche) of up to $105 million for the construction of the Epanko Graphite Project in Tanzania.
It is also pleasing to note the increase in the mining area, which has nearly doubled from 9.6 km² to 18.9 km². The expanded area covered by the special license includes a continuous strike length of 5.5 kilometers of the Epanko graphite deposit. Here, the width of the ore body averages 200 meters.
In Africa, the Epanko Project will be one of the first, and in Tanzania, the first project where graphite will be mined and undergo initial processing. For EcoGraf’s shareholders as well as for the local people, these are extremely attractive prospects that are very encouraging for the future.
