Ryzon Materials Signs EPC+M Heads of Agreement with Xinhai for Nachu Graphite Mine in Tanzania
Ryzon Materials, through its wholly owned Tanzanian subsidiary Uranex Tanzania, has confirmed full ownership of the Nachu graphite project and announced the signing of a non-binding heads of agreement (HoA) with Yintai Xinhai Mining for an engineering, procurement, construction and management (EPC+M) contract.
The Nachu graphite project, located near Ruangwa in southern Tanzania, is approximately 220 kilometres from the port of Mtwara and is strategically positioned to support future exports.
Under the HoA, Xinhai will apply its expertise in mining engineering, mineral processing, and project delivery to prepare revised capital cost estimates for the initial stage of the processing plant within the current quarter.
The project is designed to produce up to 80,000 tonnes per annum of graphite. As part of the agreement, Xinhai will also complete the detailed engineering phase for the mine and processing facilities, in line with the development timeline previously announced on September 30, 2025.
Ryzon Chairman Frank Poullas welcomed the continued collaboration, noting that the partnership marks an important step toward project execution.
He stated that the company looks forward to progressing into major development works over the coming year, supported by Xinhai’s technical and project delivery capabilities.
The HoA outlines a clear pathway toward finalising the EPC+M contract, with Xinhai expected to submit a formal proposal to Ryzon in the second quarter of 2026.
In parallel, Xinhai is assisting Ryzon in advancing project financing by leveraging its international network to help structure funding arrangements.
Discussions are currently under way with multiple potential financiers, primarily based in China, with the objective of securing at least 80% of the project’s capital requirements through debt financing.
Commenting on the project’s potential, Xinhai Chairman Elon Zhang expressed confidence in Nachu’s prospects, citing extensive site visits and comprehensive metallurgical test work completed in Xinhai’s laboratories.
He emphasized that Nachu represents a high-quality and strategically important graphite asset and affirmed Xinhai’s commitment to accelerating the project toward production within the shortest possible timeframe.
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