Name of the Project
Mahenge Liandu graphite project.

Location
Tanzania.

Client
Armadale Capital.

Project Description
The Mahenge Liandu deposit is one of the highest-grade, large-flake deposits globally after the recent upgrade to 51.1-million tonnes at 9.3% total graphitic carbon (TGC), including 38.7-million tonnes in the indicated category at 9.3% TGC and 12.4-million tonnes in the inferred category at 9.1% TGC.

The scoping study completed on the project is based on a throughput of 400 000 t/y over a 32-year mine life from the start of construction.

The deposit has a low average strip ratio of 1:1 for the life of the mine and a very low operating cost of $408/t. There remains significant scope to further improve returns using staged expansions, as the current mine plan is based on about 25% of the total resource.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at a 10% discount rate, of $348.7-million and an internal rate of return of 122%, with a payback of 1.2 years.

Value
The project has a low development capital expenditure of $35-million.

Duration
Not stated.

Latest Developments
Armadale director Nick Johansen has said the company is gaining momentum in confirming and highlighting the commercial viability of its Mahenge Liandu graphite project and is on track for a decision to mine in early 2019.

The company is confident that the mine will require low capital expenditure and low operating expenditure, and will be capable of delivering a high-grade and commercially attractive product, which is in high demand for multiple industrial applications.

Mahenge Liandu is flanked by some of the world’s major new graphite discoveries, and Armadale sees the recent political and legislative developments in Tanzania, particularly the formation of the new Mining Commission, as a significant and positive move to reaffirm the country’s position as one of Africa’s premier mining destinations. 

Key Contracts and Suppliers
BatteryLimit (scoping study).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Armadale Capital, tel +44 20 7236 1177 or email info@armadalecapitalplc.com.