PERTH (miningweekly.com) – The Nachu graphite project, in Tanzania, is a step closer to development after owner Magnis Resources signed a power development agreement with US group Symbion Power.
Under the terms of the agreement, announced on Monday, Symbion would provide a power solution for the Nachu project by developing and operating a 30 MW gas-fired power station, an associated substation and a 132 KV transmission line to connect the graphite project to the main power grid.
“Magnis has closely studied a variety of power supply options for Nachu and we believe this agreement represents the most attractive and viable pathway to provide a stable power supply for Nachu,” said Magnis chairperson Frank Poullas.
Magnis would undertake further detailed work and complete an environmental impact assessment for the power project.
Upon demonstrating the technical, economic and environmental feasibility of the power project, Symbion would be responsible for funding, developing and building the infrastructure, with the Nachu project acting as offtake partner.
The Nachu project was expected to deliver about 220 000 t/y of graphite concentrate over a mine life of 15 years and could be developed at a capital cost of $269-million.