Tanzania to become the Largest graphite Producer in the world.

 

Tanzania is setting up to become one of the largest graphite producers worldwide, thanks to discoveries of graphite deposit in the country.

In mid-January Volt Resources, an Australian flake graphite development firm focused on Tanzania, raised $4.7m in capital to help fast-track the initial stage of its flagship Bunyu graphite project.

The funds will be used in the first production phase of the project, whose output is expected to reach 400,000 tonnes per annum (tpa) of ore and 20,000 tpa of graphite products.
The graphite extracted from Bunyu will be used to make battery anodes as well as flame-retardant building materials.

After raising the capital, Volt Resources submitted an environmental and social impact statement for the project. First-stage feasibility studies are expected to finish in the first quarter of 2018, and the company is currently preparing its mining licence application, which marks the last step before works can begin.

Graphite projects under development following 2015-16 discoveries.
Bunyu is the largest of several graphite projects to launch in Tanzania in recent years, following the discovery in 2015-16 of substantial graphite deposits in the country’s south-east by mainly Australia-based developers.

In addition to the Bunyu project, Volt Resources is developing the Namangale project, which has the capacity to produce 100,000 tpa of graphite.

Magnis Resources, meanwhile, is developing the Nachu project, which has a 240,000-tpa capacity and a lifespan of 15 years, while Kibaran Resources is developing the Epanko project, with the capacity to produce 44,000 tpa.
Once fully operational, the projects should position Tanzania one of the top-three graphite producers in the world.

In 2016 China was the largest producer of graphite, at 780,000 tpa, while India came in second, with 170,000 tpa, and Brazil third, with 80,000 tpa.
According to market research firm Future Market Insights, the global graphite market was worth $15.8bn in 2016, and is forecast to see a compound annual growth rate of 6.7% through to 2027, driven in part by demand for Lithium-ion batteries, which are used in a range of products, including electric cars.
Concerns over new mining law eased.

The recent acceleration of activity both upstream and downstream will come as welcome news to the investment community following concerns over new mining legislation that came into effect in mid-July.

The bill stipulates that the government will have a 16% stake in all mining and royalties on revenue were also increased from 4% to 6%.
With the acquired right for the government to renegotiate project contracts, and temporary halts imposed on new mining licences, the laws introduced uncertainty into the sector and create concerns that planned projects could see delays.

The new projects coming on-line both in the field and at smelters are expected to boost employment and increase mining’s contribution to GDP, which accounted for 3.7% in 2014, or $1.78bn, according to the latest available data. Under its Tanzania Development Vision 2025 blueprint, the government aims to increase this to 10%.