Name of the Project
Mahenge Liandu graphite project.
Location
South-east Tanzania.
Project Owner/s
Armadale Capital.
Project Description
An updated definitive feasibility study (DFS) has reaffirmed Mahenge as a long-life low-cost graphite project.
The updated DFS envisages a staged ramp-up to facilitate near-term production, with 60 000 t/y graphite concentrate to be produced for the first three years (Stage 1) before increasing to a life-of-mine (LoM) average of 109 000 t/y (Stage 2).
The LoM has decreased from 17 years in the DFS to 15 years in the updated DFS using only 25% of the project’s resource, which remains open in multiple directions offering significant upside to the project.
Potential Job Creation
Not stated.
Net Present Value/Internal Rate of Return
The project’s net present value has increased from $358-million in the March 2020 DFS to $430-million in the June 2020 updated DFS. The internal rate of return has remained the same and the project has a 1.6-year payback after tax.
Capital Expenditure
Capital expenditure for Stage 1 has increased marginally from $38.6-million in the DFS to $39.7-million in the updated DFS.
Stage 2 is expected to be funded from cash flow.
Planned Start/End Date
The projected timeline to first production is expected to be about 10 to 12 months from the start of construction.
Latest Developments
The Australian Commonwealth Scientific and Industrial Research Organisation (CSIRO) has confirmed the suitability of natural flake graphite from Armadale Capital’s Mahenge graphite project to be used in lithium-ion batteries.
The company has been collaborating with CSIRO on testwork to confirm the Mahenge natural flake graphite as a premium-quality product, with exceptional high purity and characteristics necessary for the lithium-ion battery market.
Armadale chairperson Nick Johansen says a great deal of technical analysis and testing had been conducted during this initial phase of testwork on the project and that more advanced levels of testwork can now be done, including micronising and classification, spheronising, and electrode fabrication and testing.
He adds that these kinds of confirmations put the company in good stead with potential offtakers, with whom contact has already been initiated.
The company aims to finalise project financing this year.
Key Contracts, Suppliers and Consultants
None stated.
Contact Details for Project Information
Armadale Capital, tel +44 20 7236 1177 or email info@armadalecapitalplc.com.