EcoGraf (ASX:EGR) says an independent Tanzanian study has confirmed a ‘highly attractive mechanical shaping opportunity’ to produce unpurified active anode material for the lithium-ion battery market.
The $49.78 million market capitalisation company says 4 locations were assessed for the initial development of a 20,000-tonne-per-annum processing facility producing unpurified spherical graphite and fines from natural flake graphite.
These locations include Dar es Salaam, Kwala, Ifakara, and Mahenge in Tanzania.
The evaluation of the locations identified key advantages of future development sites in Dar es Salaam and Ifakara.
Dar es Salaam has well-developed infrastructure, including roads, highways, bridges, and rail connections.
Meanwhile, Ifakara serves as an ‘important’ economic and administrative centre in the region and has ‘excellent’ infrastructure, with rail providing a direct link to the port of Dar es Salaam.
EcoGraf is finalising its preferred site based on securing development sites, customary regulatory approvals, and Tanzania’s Export Processing Zones Authority (EPZA) incentives.
Further, the company says the study confirmed operating cost savings of up to 50% by locating these activities in Tanzania, driven by low energy costs.
EcoGraf notes the Tanzanian mechanical shaping industry supports optimised global logistics into Europe, Asia, and North America, with location footprint sought to support future expansion, enabling the company to expand in step with the expected ‘strong’ growth in demand for active anode material.
EcoGraf is a battery anode material company producing high-purity graphite products for the lithium-ion battery and advanced manufacturing markets. As of 30 June 2023, the company had $38.6 million cash at hand, according to its latest quarterly report.
Write to Aaliyah Rogan at Mining.com.au
Images: EcoGraf
