PERTH (miningweekly.com) – Junior graphite developer Magnis Resources has signed a memorandum of understanding (MoU) with China Railway 24th Bureau Group for the development of the Nachu graphite project, in Tanzania.
Under the terms of the MoU, the two parties would enter into formal negotiations to secure an engineering, procurement, construction and contract mining contract, estimated to be worth about $150-million.
China Railway 24th Bureau Group is a subsidiary of China Railway Construction Corporation (CRCC), which is one of the largest integrated construction groups in the world.
“Having a partner, China Railway 24th Bureau Group, a key member of CRCC, which is one of the largest and most recognised engineering and construction companies in the world, with over 200 000 employees, is further testament to the quality of our Nachu graphite project,” said Magnis chairperson Frank Poullas.
“With binding offtakes totalling 180 000 t/y with Sinosteel and Sinoma, and now with the MoU signed with China Railway 24th Bureau Group, the Nachu project is going from strength to strength.”
The Nachu project was estimated to host a mineral resource of 156-million tonnes, grading 5.2% graphitic carbon, to contain over eight-million tonnes of contained graphite.
Some 66% of this resource is classified as measured and indicated.