EcoGraf, a company listed on the ASX, announced on Tuesday September 19th that it is in the final stages of selecting a preferred site for a potential spherical graphite processing facility in Tanzania.
This development comes after an independent study confirmed the promising economic prospects of the project.
In a communication to its shareholders, EcoGraf revealed that its mechanical shaping study in Tanzania had pinpointed four potential locations for the initial establishment of a processing facility with a capacity of 20,000 tons per year.
This facility would utilize natural flake graphite sourced from the Epanko mine in Tanzania. The study also confirmed substantial cost savings, up to 50%, when compared to earlier studies conducted by EcoGraf in different global locations.
These cost savings are primarily driven by significantly lower energy costs, a major cost component for the milling and shaping processes.
Moreover, the establishment of a mechanical shaping operation in Tanzania would strategically facilitate efficient global logistics, particularly to Europe, Asia, and North America.
EcoGraf is keen on a location footprint that can support future expansion, aligning with the anticipated surge in demand for active anode material, as stated by the company.
EcoGraf is now in the process of finalizing the preferred site selection, contingent upon securing development sites, obtaining regulatory approvals, and securing investment incentives from Tanzania’s Export Processing Zones Authority.
These incentives could potentially include exemptions lasting up to ten years on corporate tax, local government taxes, VAT on utilities, and duties on capital equipment.
