Countdown to 2024 Mining Conference Graphite-rich TZ poised to reap big

TANZANIA : TANZANIA is well-positioned to capitalise on the growing global demand for graphite, owing to its extensive reserves of this vital mineral. It is estimated that the country holds nearly 5 per cent of the world’s total graphite reserves, amounting to approximately 323.8 million tonnes.

The largest graphite deposits in Tanzania are located primarily in the central and southeastern regions.

Graphite, a crystalline form of carbon composed of graphene layers, plays a crucial role in numerous technological developments.

It is considered a critical mineral by many nations due to its applications in battery production, brake linings, lubricants, pencils, powdered metals, steelmaking and refractories.

The global demand for graphite is expected to grow steadily, largely driven by the expansion of the lithium-ion battery market, with the World Bank predicting production could increase by nearly 500 per cent by 2050.

Tanzania is set to unlock its graphite potential as mineral extraction gains momentum in line with the country’s mining development goals.

Current graphite projects include Lindi Jumbo, Bunyu, Chilalo, Epanko, Mahenge, Nachu and Bagamoyo, each at different stages ranging from exploration to production ramp-up.

For instance, the Lindi Jumbo Graphite Project, owned by Walkabout Resources (ASX: WKT), is a high-grade, large-flake graphite project located about 200 km from the port of Mtwara.

According to the project’s Definitive Feasibility Study (DFS) updated in 2019, it hosts a high ore grade reserve of 5.5 million tonnes at 17.9 per cent Total Graphitic Carbon (TGC).

The annual production is estimated at 40,000 tonnes of premium natural flake graphite over a Life-of-Mine (LoM) of 24 years.

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The project is currently in the ramp-up phase, having begun production using individual plant circuits. The first graphite concentrate from the Lindi Jumbo project was bagged in May 2024.

An ASX announcement from Walkabout Resources on September 4, 2023, indicated that ramp-up production in August averaged more than 55 bags of dry graphite concentrate per day, with a maximum single-day production of 94 bags.

The Bunyu Graphite Project, located in the Mtwara Region and wholly owned by Volt Resources Limited (ASX: VRC), is one of the largest graphite deposits globally, with an estimated resource of 461 million tonnes at 4.9 per cent TGC, which equates to 22.6 million tonnes of contained graphite and a proven reserve of 127 million tonnes at 4.4 per cent TGC.

The project follows a two-phase development plan. Stage one aims to produce 24,780 tonnes of flake graphite annually, while stage two will expand production to 170,000 tonnes per annum. Stage one has secured sales agreements with Graphex Group Limited and Qingdao Baixing Graphite Company Ltd.

The Chilalo Graphite Project, in southeastern Tanzania, is run by Kudu Graphite, a joint venture with Evolution Energy Minerals holding 84 per cent and the Tanzanian government 16 per cent. A 2023 update revealed 67.3 million tonnes of high-grade graphite at 5.4 per cent total graphite content (TGC), with a probable ore reserve of 8 million tonnes at 10.5 per cent TGC.

The Epanko Graphite Project in Morogoro, operated by EcoGraf in partnership with the Tanzanian government, holds 290.8 million tonnes at 7.2 per cent TGC. EcoGraf aims to finalise funding soon to begin construction.

In the Mahenge project, Faru Graphite Corporation manages a significant graphite resource, with Black Rock Mining owning 84 per cent and the government holding 16 per cent. This project has 213 million tonnes at 7.8 per cent TGC, with plans to produce up to 340,000 tonnes per annum over 26 years.

The Nachu Graphite Project, owned by Magnis Resources, is located near Lindi and has an annual capacity of 240,000 tonnes, with over 82 per cent of the product being coarse flake graphite.

Lastly, the Bagamoyo Graphite Project, managed by Marula Mining PLC, is still in exploration but has discovered two major graphite zones, with promising assay results showing up to 19.71 per cent TGC at the Mihuga Prospect.