Tanzania’s Nachu Graphite Project will receive more financial investment after Magnis Resources Limited secured over $11 million from Australian private company AL Capital Holding Pty Ltd. Trading as MNS in the Australian Securities Exchange (ASX), Magnis revealed that a portion of the investment would go to its world-class Nachu Project In South East Tanzania.
The finances would help Magnis to strengthen the company’s balance sheet and allow it to capitalize on the current and future growth opportunities in the battery technology sector, and to fund the ongoing investment in the future development of the Company’s 100% owned Nachu Graphite project in the East African nation.
Australian Magnis signed a Memorandum of Understanding (MoU) with the Rosatom State Nuclear Energy Corporation in 2017, for the funding of the project. Ranked first as the largest electricity generating company in Russia, Rosatom State Corporation is the owner of the Mkuju River uranium project located in southern Tanzania.
“Our financial position is now secured for the medium term, but more importantly, we have a strong partner and, we welcome AL Capital’s investment. We confirm we are making excellent progress at our most advanced battery plant at Huron Campus, in New York,” Magnis chairman Frank Poullas noted.
The Tanzanian Ministry of Energy and Minerals (MEM) recently stated that the country could soon become the largest producer of graphite in the world. Currently, the title is held by China which produces 750,000 metric tons of the naturally-occurring form of crystalline carbon. The nation is followed closely by India in the pecking order with 170,000 MT and Brazil in the third position with 95,000 MT.
With an estimated production span of 40 years, Nachu graphite project is expected to produce 240,000 tonnes per annum, overtaking anticipated production of Namangale graphite project (100,000 tonnes) and Epanko graphite project (44,000 tonnes).
The mining industry in Tanzania has continued to grow showing stability in the process of dynamic changes.