Aim-listed investment group Armadale Capital has submitted the environmental- and social-impact assessment (Esia) for its Mahenge Liandu graphite project in south-east Tanzania to the National Environment Management Council (NEMC) of Tanzania.

The Esia application for the project was submitted by Tanzania-based, registered and certified environmental consultants.

Armadale’s geology staff and its environmental consultants visited the project area in late August to prepare for a field visit by the NEMC, which it has been confirmed will commence on September 14. This is expected to be the final step before the granting of the mining licence.

The project is set to produce natural flake graphite and has the potential to create pre-tax cashflow of $985-million over an initial 15-year mine life.

Before submitting the Esia, Armadale submitted a mining licence application for the project to the Department of Energy and Minerals in Tanzania on June 30, with the Esia being one of the final key components of this application process.

Once approved by the NEMC, the Esia will be submitted to the Department of Energy and Minerals to complete the application process. 

Other components of the mining licence process include a local content plan, a human resources plan, a resettlement framework and mine plans.

Armadale chairperson Nick Johansen thanks all those involved for their efforts and says the company looks forward to working with the NEMC as the company advances toward the completion of this process.

“Alongside the progression toward receipt of the mining licence for the project, which will be an important de-risking milestone for the company, we maintain focus on finalising ongoing financing discussions so that we can commence construction and realise the value of Mahenge Liandu for the benefit of all stakeholders.”

Accordingly, he says Armadale will continue to positively engage in development funding options, including debt package and project level development funding, and its offtake workstreams are also progressing preparations to commence the front end engineering design study.