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Mahenge Liandu graphite project, Tanzania

24th July 2020

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor

     

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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 109 000 t/y (Stage 2).

The LoM has decreased from 17 years in the DFS to 15 years in the updated DFS using just 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.

The project has a 1.6-year payback after tax.

Capital Expenditure
Capital expenditure for Stage 1 has increased marginally from A38.6-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
None stated.

Key Contracts and Suppliers
None stated.

Contact Details for Project Information
Armadale Capital, tel +44 20 7236 1177 or email info@armadalecapitalplc.com.

Edited by Martin Zhuwakinyu
Creamer Media Magazine Managing Editor

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