Epanko to cost $88.9m
PERTH (miningweekly.com) – An updated bankable feasibility study (BFS) for the Epanko graphite project, in Tanzania, has showed that the increased production rate of 60 000 t/y would require a capital investment of $88.9-million.
The BFS estimated that the project will have a pre-tax net present value of $211-million and an internal rate of return of 38.9%, delivering yearly earnings before interest, taxes, depreciation and amortisation of $44.5-million.
“This detailed updated BFS shows that Epanko is a world-class graphite project in every respect. The outstanding quality of the deposit underpins the project’s extremely robust economics, demonstrated by the strong alliance the project has managed to secure with a range of German industrial groups,” said Kibaran MD Andrew Spinks.
“Passing this milestone was the key catalyst to advance debt financing and allows Kibaran and its sales partners, industry groups and private equity groups that have previously expressed interest, to commence project financing discussions in detail.”
A debt financing programme has started under the leadership of Germany’s KfW IPEX-Bank, with Kibaran also working through an assessment process with South African bank Nedbank and Australia’s Finance and Insurance Corporation.
Discussions are also progressing with a number of strategic equity investors, with Kibaran to determine the preferred debt and equity funding structure.
Kibaran is also working on completing the feasibility study for the production of battery grade spherical graphite, with the study due to be completed in the third quarter of this year.
The study is based on a staged integration with the ramp-up of graphite production at Epanko.
Downstream processing is expected to provide a floor price for mine gate products, given the access to value added markets through the additional processing facility.
The ASX-listed company previously signed a binding sales and offtake agreement covering some 44 000 t/y of flake graphite concentrate, with a further 16 000 t/y under negotiations with existing partners and leading German carbon groups.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation