POSCO signs up to help Magnis find funding

27th October 2015

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

Font size: - +

PERTH (miningweekly.com) – Graphite developer Magnis Resources has signed a memorandum of understanding (MoU) with South Korean major POSCO E&C to advance the funding and construction of the Nachu graphite project, in Tanzania.

Under the terms of the MoU, POSCO would arrange senior loans with financial institutions, while Magnis would arrange subordinate debt and equity, as well as the overall coordination of project funding.

POSCO would also develop a fixed-price lump sum for project execution by the second quarter of 2016, while Magnis would update the Nachu resource and reserve definition and feasibility study to the satisfaction of lenders.

Magnis chairperson Frank Poullas said on Tuesday that having POSCO on board as lead arranger and engineering, procurement and construction consultant highlighted the quality of the Nachu project.

“POSCO has demonstrated time and again that they can bring projects into production on time and with the highest standards,” he noted.

The Nachu project was estimated to host a mineral resource of 156-million tonnes, grading 5.2% graphitic carbon, to contain over eight-million tonnes of contained graphite.

Production would start in the first quarter of 2017.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

The content you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION