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Battery manufacturing facility, Tanzania

25th September 2015

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor

  

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Name and Location
Battery manufacturing facility, Tanzania.

Client
Kibaran Resources.

Project Description
A battery-grade graphite manufacturing scoping study has highlighted robust economics and a compelling case for the development of such a facility to participate in downstream value-added processing. The battery study forms part of Kibaran’s vertically integrated growth strategy and has assessed the development of a manufacturing facility to produce battery-grade spherical graphite, expanded graphite and other value-add purified products using premium-quality graphite from Kibaran’s planned graphite projects in Tanzania. Graphite will initially be sourced from the proposed staged increases in production from the Epanko graphite project, where the company has completed a bankable feasibility study.

Expanded Epanko graphite production will be the initial feed and the basis for the initial total production of 15 000 t/y. In terms of spherical graphite alone, production modelling starts at 6 000 t/y, increasing to 24 000 t/y.

Staged expansion is expected to be supported by project cash flow.

Net Present Value/Internal Rate of Return
The project has a net present value, at 10% discount rate, of $115-million and a pretax internal rate of return of 51%, with a payback of 1.9 years.

Value
Capital expenditure (capex) is estimated at $35-million.

Duration
The manufacturing of first battery-grade spherical graphite is scheduled to start
12 to 18 months into Stage 1 of the Epanko graphite project’s expanded production.

Latest Developments
Discussions have started with strategic industry partners to jointly fund the feasibility study and ultimately capex through direct investment in the project.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Kibaran Resources, tel +61 8 6380 1003 or email info@kibaranresources.com.

Edited by Martin Zhuwakinyu
Creamer Media Magazine Managing Editor

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