EcoGraf, an ASX-listed company, announced it’s nearing a decision on a prime location in Tanzania for a potential unpurified spherical graphite (SPG) and fines facility. This comes after an independent study highlighted the economic viability of such a development.
The company’s recent Tanzanian mechanical shaping study pinpointed four possible locations for the early stages of a 20,000-tonnes-per-year processing facility. This facility would utilize natural flake graphite from the c situated within Tanzania.
One of the notable outcomes from the study was the potential for up to 50% cost savings in comparison to earlier studies EcoGraf conducted in various global locations. These savings are largely attributed to significantly reduced energy costs in Tanzania, which play a vital role in milling and shaping operations.
Additionally, setting up a mechanical shaping operation in Tanzania offers strategic benefits in terms of global logistics.
With its advantageous geographical position, the facility could efficiently serve major markets like Europe, Asia, and North America. The selected location is also envisioned to support future expansion efforts, aligning with EcoGraf’s plans to meet the projected surge in demand for active anode materials.
EcoGraf, in its bid to ensure the smooth progression of its graphite facility development in Tanzania, is meticulously engaging in a multi-pronged approach to solidify the project’s foundation.
The company is not only searching for the ideal location that meets all its technical and logistical requirements but is also deeply involved in acquiring the necessary rights to development sites.
This acquisition process can be intricate, often involving negotiations with local stakeholders, ensuring that the chosen location aligns with both the company’s needs and the aspirations of the local community.
In addition to site acquisition, the company is navigating the often complex web of regulatory approvals. This involves liaising with multiple Tanzanian government departments and agencies to ensure that every aspect of the proposed facility adheres to local laws and standards.
By working in tandem with regulatory bodies, EcoGraf aims to establish a facility that not only bolsters its business interests but also respects Tanzanian environmental, safety, and operational guidelines.
Furthermore, to enhance the economic feasibility of the project, EcoGraf is actively pursuing a series of investment incentives. One significant avenue they are exploring is collaborating with Tanzania’s Export Processing Zones Authority.
This body has the power to bestow several financial benefits that can dramatically impact the project’s bottom line. Among the potential incentives are exemptions that span a decade, providing relief from various taxes.
These include corporate taxes, which can be substantial for businesses of EcoGraf’s scale, and local government taxes, which can vary depending on the region. Added to this, the possibility of waiving VAT on utilities offers another financial cushion, given the high consumption rates of large-scale operations. Moreover, exemptions on duties for capital equipment would be a boon for EcoGraf, as setting up a new facility requires significant investment in machinery and technology.
In summary, EcoGraf’s meticulous approach to finalizing its Tanzanian project’s location is complemented by its efforts to ensure financial viability and regulatory compliance. The company’s collaboration with local authorities, particularly the Export Processing Zones Authority, is a testament to its commitment to building a sustainable and mutually beneficial relationship with its host country.
