Engineering and construction services company China Railway 24th Bureau Group in January signed a memorandum of understanding (MoU) in terms of which it will offer engineering, procurement and construction services to graphite producer Magnis Resources’ Nachu project, in south-east Tanzania.
The overall project development is worth an estimated $150-million.
The next step in the process is a site visit and negotiations for the signing of relevant subcontracts, with all parties aiming for project development to start in the first half of the year, Magnis Resources chairperson Frank Poullas says.
He states that having China Railway 24th Bureau Group as a partner is testament of the qua-lity of the Nachu graphite project.
“With binding offtakes totalling 180 000 t/y with mining, equipment manufacturing and engineering company Sinosteel Corporation and Chinese State-owned cement equipment and engineering services provider China National Materials Group Corporation, and now the MoU, the Nachu project is going from strength to strength.”
Poullas further says that the project will be a success as the company has an experienced management team.
Magnis Resources, along with its partners, has delivered multiple mining projects in Africa, including Tanzania, and is assembling the best possible partners to ensure that the overall team working on the Nachu project is suitably qualified, and has relevant experience.
Meanwhile, China Railway 24th Bureau Group overseas business department GM Wei Wang says the graphite that Nachu can produce has the potential to be among the best in the world.
“With our vast experience in Tanzania and other African areas, we look forward to working with Magnis Resources to construct the world’s most significant and profitable graphite mining operation,” he adds.
China Railway 24th Bureau Group is a wholly owned subsidiary of publicly listed construction corporation China Railway Construction Corporation (CRCC). The company has more than 200 000 employees, which makes it one of the largest and most recognised engineering and construction companies in the world, says Wang.
He adds that CRCC is listed in Shanghai and Hong Kong respectively, and is one of the world’s largest integrated construction groups. The company is ranked sixth on the list of China’s Top 500 Enterprises.
CRCC’s business covers project contracting, survey design consultation, industrial manufacturing, real estate development, logistics, trading in goods and materials as well as capital operations.
Over the years, the company has evolved mainly from construction contracts into a complete and comprehensive industrial chain of scientific research, planning, survey, design, construction supervision, maintenance and operation.