Tanzania graphite project could come on stream by 2021
A definitive feasibility study (DFS) into the Chilalo graphite project, in Tanzania, has confirmed the project economics, with ASX-listed Graphex Mining informing shareholders last month that the company was continuing discussions with financiers, with the aim of starting production by the fourth quarter of 2021.
The DFS was based on throughput of 500 000 t/y to produce about 50 000 t/y of graphite, with the preproduction capital cost estimated at $87.4-million.
The study estimated a post-tax net present value of $331-million and a post-tax internal rate of return of 36%, with Chilalo expected to generate average earnings before interest, taxes, depreciation and amortisation of $74-million a year over its 18-year mine life.
“The DFS demonstrates that Chilalo will be a robust project, based on a probable reserve of 9.2-million tonnes, underpinning an estimated 18-year mine life producing approximately 50 000 t/y of high-value graphite products,” said Graphex MD Phil Hoskins.
He added, with key approvals in place, including the mining licence, the environmental certificate and community relocation arrangements and compensations having been agreed and approved, Graphex was in a strong position to start development, with first production slated for the fourth quarter of 2021.
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