PERTH (miningweekly.com) – ASX-listed Kibaran Resources has mandated Germany’s KfW IPEX-Bank to provide debt funding to develop the Epanko graphite project, in Tanzania.
KfW IPEX-Bank and Kibaran will now proceed with a lender credit review process and prepare an application for the German government untied loan guarantee scheme that supports the proposed senior debt funding package for Epanko.
Kibaran on Monday pointed out that the project is development ready, with the company already having invested over A$35-million to date. Sales and offtake agreements have also been secured, with a mining licence and environmental approvals already in place.
A bankable feasibility study estimated that the Epanko project would require a capital investment of $88.9-million, to produce 60 000 t/y of graphite.
Kibaran told shareholders that Epanko could make some $850-million in direct financial contributions to the Tanzanian economy over the first 20 years of operation, and could generate an additional $2.5-billion in indirect gross domestic profits.
The project is expected to employ some 300 Tanzanians and would create up to 4 500 indirect jobs through the supply of local goods and services.
Kibaran noted that positive discussions with the Tanzanian government are continuing, following the recent Barrick Gold announcement regarding a resolution of the dispute with Acacia Mining.