Name of the Project
Mahenge Liandu graphite project.

Location
Tanzania.

Project Owner/s
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, producing an average of 49 000 t/y of high-quality graphite products during a 32-year life-of-mine.

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.

Capital Expenditure
The project has a low development capital expenditure of $34.9-million.

Planned Start /End Date
The company plans on starting production in 2021.

Latest Developments
Armadale Capital has commissioned mining project development consultancy BatteryLimits to expand the scope of the definitive feasibility study (DFS) at its Mahenge Liandu graphite project to include a downstream analysis on high-quality, high-purity flake graphite concentrate.

This will be done during the metallurgical testwork programme.

Downstream testwork will include, among others, the purification of spherical graphite, as well as the electrical characterisation thereof and the production of battery cells.

The results are critical in highlighting the extent to which graphite concentrate from Mahenge Liandu can be used to produce battery cells, a key data point for prospective Chinese offtake partners, Armadale has said.

Armadale remains optimistic that the testwork results will “exceed the industry standards” for battery anode materials.

Key Contracts and Suppliers
BatteryLimits (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.