Name of the Project
Epanko graphite project pilot plant.

Location
Tanzania.

Client
Kibaran Resources.

Project Description
Kibaran Resources completed a feasibility study on the downstream processing of graphite from its Epanko graphite project in December 2017. The study concluded that the production of battery-grade graphite using Kibaran’s proprietary purification technology, which uses simple chemicals without the need for hydrofluoric acid, would be low cost and environmentally friendly.

The feasibility study was based on the production of 20 000 t/y of spherical graphite, four times the rate originally planned. The decision to increase the production rate was based on strong customer feedback on Kibaran’s ecofriendly processing route and the expected 300% to 400% growth in demand from the battery sector from 2020.

The study proposes a two-stage strategy to meet market demand:

Stage 1 – the establishment of a pilot plant in Germany in early 2018 to conduct further testwork on product qualities, refine the new nonhydrofluoric acid purification technology and complete customer prequalification processes. The pilot plant will allow for the expansion of production rates to 600 t/y to allow for the initial commercial sales of unpurified battery (spherical) graphite.

Stage 2 – the construction of a full commercial-scale operation in 2019, starting with the production and sale of up to 5 000 t/y and ramping up over several years to reach a battery graphite production rate of 20 000 t/y. It is expected that the expansion of the pilot plant and the start of construction of full-scale facilities will be undertaken in parallel to meet the forecast demand growth from customers in Asia and Europe.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at a 10% discount rate, of $145-million and an internal rate of return of 34.3%, with a payback of three years.

Value
The project will require an initial investment of $66-million.

Duration
Not stated.

Latest Developments
Kibaran Resources is ready to present its Epanko graphite project to Tanzania’s yet-to-be-established Minerals Commission to start discussions on “silent” matters and the impact on the proposed Epanko debt financing arrangements.

Kibaran has reviewed the mining regulations that were issued in January to support the new mining laws in the country and has found no serious impediment to development at the project level.

The company believes that it is well positioned to comply with the new mining regulations with the completion of the Equator Principles-compliant bankable feasibility study that satisfied the stringent International Finance Corporation Performance Standards and World Bank Group Environmental, Health and Safety Guidelines.

Project development plans are also consistent with the standards required by the new mining regulations in Tanzania and all documents required to secure government development approvals are completed, including the resettlement action plan.

Further, the group’s discussions with project finance parties are well advanced, with prospective lenders awaiting certainty to be provided from the Mineral Commission on various aspects of the legislation affecting lending arrangements.

The project financiers and the Australian government are assisting Kibaran in securing Mining Commission endorsement.

This follows the rigorous independent due diligence undertaken on the project by bank-appointed engineers.

“This process has significantly derisked the project on . . . technical and financial fronts, with the Epanko project globally being the only graphite project to be subjected to this degree of independent scrutiny,” Kibaran has pointed out.

Kibaran will provide an update on its Epanko development timeline after presenting it to the Mining Commission.

Key Contracts and Suppliers
GR Engineering, with participation from ProGraphite (feasibility study).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Kibaran Resources MD Andrew Spinks, tel +61 8 6424 9000 or email info@kibaranresources.com.