Mechanical Shaping Facility to Lead Graphite Value Addition in Tanzania
The Australian graphite company EcoGraf (ASX: EGR; FSE: FMK) has recently been able to report good news from its Epanko project in Tanzania. Now the company, led by Managing Director Andrew Spinks, follows up with positive results from an independent technical study for its TanzGraphite Mechanical Shaping Facility in Ifakara, Tanzania. Here, spherical graphite is to be produced from Epanko’s natural graphite, an important intermediate stage in the production of battery-grade graphite.
The main highlights of the study are:
• In Stage 1, 20,000 tonnes of flake graphite per year will be processed, achieving a yield of over 60% spherical graphite (SpG).
• Construction costs amount to $58.6 million, while operating costs are estimated at only $419 per tonne – particularly due to low electricity and transportation costs in Tanzania.
• Potential incentives for so-called “Free Export Zones” include a 10-year corporate tax exemption.
• European funding and sales interests support the development planning.
• Discussions are ongoing with the EU Commission regarding additional studies on the value addition of graphite fines, including EcoGraf’s GreenRECARB product.
• The facility will supply feedstock for EcoGraf HFfree™ purification plants, with strong interest in their establishment in Europe.
According to the company, the study just presented is based on ten years of technical work and a preferred location in Ifakara, offering clean energy and transportation advantages. It aligns with plans to expand Epanko’s graphite production to 300,000 tonnes per year and optimize logistics to Dar es Salaam.
The facility will process Epanko flake graphite into spherical graphite, a key material for lithium-ion battery anodes. Extensive pilot trials and commercial-scale tests confirm a yield of over 60%, supported by:
• Batch and commercial processing of 4.4 tonnes in 11 campaigns.
• Benchmarking of Epanko graphite against global competitors.
• Customer evaluations in Europe, Asia, and North America.
Capital cost estimates follow an EPCM approach, including the facility’s infrastructure, roads, fencing, water storage, and power distribution. Excluded costs – tailings, initial stockpiles, waste treatment – will then be incorporated into final designs.
Life Cycle Assessment Confirms CO2 Reduction of Approx. 20%
An updated life cycle assessment confirms a CO2 reduction of approximately 20% in the shaping process, leveraging Tanzania’s advantages in hydropower and logistics. Discussions with the EU focus on supporting the facility and utilizing graphite by-products.
The Ifakara location, situated on major transport networks, offers potential rail connections and clean power from the EU-funded Ifakara substation linked to the Julius Nyerere hydropower project. Ifakara is 75 km from Epanko.
EcoGraf’s HF-free (hydrofluoric acid) purification technology has already been successfully operated continuously. The vertically integrated approach ensures cost and environmental benefits for electric vehicle manufacturers using Epanko’s high-quality natural graphite.
Special Mining License Now in Place
A Special Mining License (SML) for Epanko was granted on March 3, 2025, supporting a multi-generational operation with 290.8 Mt at 7.2% TGC. Ore reserves total 14.3 Mt at 8.8% TGC, of which 82% are classified as proven, ensuring high metallurgical recovery and price advantages.
EcoGraf has engaged KfW IPEX-Bank to secure UFK cover and a senior credit facility of up to $105 million for Epanko’s construction. The German government has confirmed that Epanko is eligible for UFK cover, subject to independent expert review.
The UFK program, supported by the German government through Euler Hermes, promotes long-term supply security for critical minerals. Upon approval, it would significantly increase Epanko’s financial flexibility.
A key requirement of the UFK is compliance with high environmental and social standards. Epanko’s programs align with the Equator Principles, ensuring responsible project financing and development.
Conclusion: EcoGraf is already making significant progress on multiple fronts at the beginning of 2025. Following the announcement of the successful operation of the product qualification facility for the hydrofluoric acid-free production of battery anode material, came the critically important news about the granting of the Special Mining License or SML for the Epanko project, now followed by positive news on the production of spherical graphite in Tanzania. We sincerely hope that the company, led by Managing Director Andrew Spinks, can continue this momentum for the rest of the year. We will definitely stay tuned!
