EcoGraf Limited (ASX: EGR; Germany: FMK) reports further progress towards financing its Epanko graphite project in Tanzania. The company has completed the preparation of the central technical documentation for the so-called Independent Engineers’ Report (IER) – an essential component for securing the planned debt financing via KfW IPEX-Bank.
The independent technical advisor’s report was already submitted to KfW IPEX-Bank following an extensive review program that began in 2024! The aim is to structure a senior secured credit line of up to USD 105 million under the German “Untied Loan Guarantee” program to support projects with relevance for German industry.
EcoGraf and Epanko: Technical hurdle for loan financing almost cleared
For EcoGraf, the Independent Engineers’ Report is a central element in the financing process for the Epanko project. The IER summarizes the most important technical aspects of the planned graphite production – from geology and deposit to process design and operating concept to risks and mitigation measures – and is used by the lenders as an independent reference for their lending decision.
According to EcoGraf, the IER complements a series of already completed works with which the company has adapted its planning to international environmental and social standards. These include:
- a comprehensive Resettlement Action Plan (RAP),
- Environmental baseline studies and impact analyses,
Environmental and social management plans that are based, among other things, on the IFC Performance Standards, the Equator Principles, the Global Industry Standard on Tailings Management and the World Bank Environmental, Health and Safety Guidelines.
These documents are intended to ensure that the Epanko project meets both the ecological and social requirements of international financiers. The Epanko graphite deposit forms the core of the project planning.
At the same time, discussions are ongoing regarding the economic conditions of the debt financing. According to EcoGraf, the term sheet negotiations with KfW IPEX-Bank, which already began in the course of the year, are expected to be completed by the first quarter of 2026.
Role of the German UFK cover and the independent expert
A further step in the process is the involvement of an independent appraiser. This body is to evaluate the findings from the Independent Engineers’ Report and the other documents and contribute to the work of the responsible interministerial committee of the Federal Government.
On this basis, the Federal Government decides on a binding coverage commitment within the framework of the German “Untied Loan Guarantee” (UFK guarantee). This represents a state export credit guarantee that secures loans for projects that support the supply of important raw materials or preliminary products to German industry.
KfW IPEX-Bank is supporting EcoGraf in structuring this financing. Michael Waitz, Director and Co-Head Metals & Mining of the bank, emphasized in this context that both partners pursue similar goals in sustainable development and responsible innovation promotion. The focus is on building resilient supply chains, supporting solutions for clean energy and contributing to a lower-carbon economy.
KfW Group: Additional development instruments for Epanko and the surrounding area
According to its own information, EcoGraf is examining further development financing instruments from the KfW environment beyond pure project financing, which could support Epanko and the surrounding communities.
The KfW Group offers various funding instruments via different units:
- KfW DEG (German Investment and Development Company) focuses on financing private investments in developing and emerging countries with the aim of promoting sustainable growth and better living conditions.
- On behalf of the Federal Government, KfW Development supports state development projects, for example in the areas of infrastructure, climate resilience or renewable energies.
KfW Development is represented in Tanzania with an office in Dar es Salaam. The institute has already co-financed a number of projects there, including in the areas of water supply, climate adaptation, biodiversity protection and renewable energy. As an example, EcoGraf cites the co-financing of the Kakono hydropower project, which is intended to contribute to the reduction of fossil fuel power generation and fits into the “Tanzania Vision 2025” development strategy.
Against this background, EcoGraf sees points of contact in order to support projects in the region around Epanko in addition to pure mine development – for example in the area of local infrastructure or social projects. However, no specific funding commitments were announced as part of the announcement.
Epanko graphite project: Building block for battery value creation and German industry
According to EcoGraf, the Epanko graphite project is the “cornerstone” of the company’s strategy. The plan is to produce natural
EcoGraf emphasizes in its communication that the project is geared towards environmental responsibility, social integration and economic development. The company sees a close alignment with the KfW’s mandate to finance projects with a focus on climate protection, resource efficiency and sustainable infrastructure in these goals.
Therefore, two levels remain decisive for the coming months:
- Technical-financial side – completion of the Independent Engineers’ Report, evaluation by the Independent Expert, continuation of the term sheet discussions and possible UFK cover by the Federal Government in cooperation with KfW IPEX-Bank.
- Development and regional level – possible additional support through instruments of the KfW Group, which could benefit not only the Epanko deposit but also projects in the surrounding area.
With the completion of the core technical documents now achieved and the involvement of KfW IPEX-Bank and the KfW Group, the next milestone in the project development is moving closer for EcoGraf: a viable financing structure for the Epanko graphite project in Tanzania.
