EcoGraf Limited (ASX: EGR; FSE: FMK) announced potential plans to increase Stage 1 production capacity at its Epanko Graphite Project in Tanzania by 20%, from 73,000 to 87,600 tonnes per annum, following a Value Engineering Review conducted on 24 September 2026. The review, led by the company’s consultant METC-PaulSam JV, found that the higher throughput could be achieved with minimal design changes to the Bankable Feasibility Study (BFS) layout, requiring an additional USD 12.0 million in capital investment. This adjustment would reduce operating costs by 5.8%, with C1 costs projected at USD 515.9 per tonne of concentrate over the project’s life, down from USD 553.3 per tonne in the Updated BFS released in February 2026.
The proposed expansion, pending a Final Investment Decision (FID), would support the development of a 25,000-tonnes-per-annum HFfree Battery Anode Material (BAM) facility, part of EcoGraf’s global downstream strategy. The project, located in Tanzania’s Mahenge Graphite Province, is operated by Duma TanzGraphite, a joint venture in which EcoGraf holds an 84% stake, with the Tanzanian government retaining a 16% free-carried interest. The government granted Duma TanzGraphite a 25-year Special Mining Licence in March 2025, expanding the licensed area to 18.9 square kilometres.
Key improvements identified in the review include selective upgrades to flotation capacity, minor classification and screening enhancements, and optimizations in concentrate filtration and drying circuits. Approximately 44% of major equipment would require modifications, most deemed modular and low-complexity. The incremental USD 12.0 million capital cost—split between USD 5.5 million for the processing plant and USD 6.5 million for the tailings storage facility—falls within the Updated BFS’s USD 22 million contingency allowance. The project’s Ore Reserve remains unchanged at 16.7 million tonnes of graphite at 8.2% total graphitic carbon (TGC), with the revised throughput shortening the life of mine (LOM) from 22 to 20 years.
EcoGraf reported progress on strategic equity and offtake agreements, including a partnership with Mitsubishi Chemical Corporation for up to 10,000 tonnes per annum of purified spherical graphite. The company also maintains sales contracts with Germany’s ThyssenKrupp AG and Japan’s Sojitz Corporation. The Epanko project’s expanded capacity could bolster Tanzania’s role in global battery material supply chains, particularly as demand for HFfree purification technology grows. However, the company has not yet quantified updated net present value or internal rate of return figures for the potential increase.
The Value Engineering Review highlighted that existing plant designs, including crushing, grinding, and flotation circuits, were conservatively engineered, allowing for higher throughput with limited modifications. The project’s updated mining and processing schedules rely solely on the existing Ore Reserve, without incorporating Inferred Mineral Resources or exploration targets. An EIB Technical Assistance grant of up to EUR 2 million (AUD 3.2 million) will fund independent studies on the expansion, including environmental, social, and market analyses.
Tanzania’s mining sector has seen increased international interest, with recent collaborations including a geophysical survey funded by China and a USD 1.5 billion investment in a dry port by the Democratic Republic of Congo. Fitch Ratings upgraded Tanzania’s outlook to positive in 2026, citing growth driven by tourism and mining. The Epanko project’s potential to enhance graphite output aligns with these trends, though its success hinges on securing financing and regulatory approvals.
EcoGraf’s most recent Mineral Resource estimate for Epanko, announced in March 2024, reported 290.8 million tonnes at 7.2% TGC, making it one of Africa’s largest development-ready graphite deposits. The company’s strategic focus on downstream battery materials positions it to capitalize on the global shift toward sustainable energy. However, the project’s environmental and social impacts remain under scrutiny, with the EIB grant intended to address these concerns through independent assessments.
The Epanko Graphite Project’s expansion plans underscore Tanzania’s growing significance in the global graphite market. With the potential to increase output while reducing costs, the project could attract further investment and strengthen the country’s mining sector. However, stakeholders will closely monitor the FID process, the EIB’s technical studies, and the project’s alignment with national and international sustainability standards.
EcoGraf’s leadership emphasized the importance of the Epanko project in advancing its global battery materials strategy, stating that the capacity increase would enhance competitiveness in key markets. The company’s CEO noted that the revised design reflects “a balanced approach to maximizing value while maintaining operational efficiency.” The project’s success could also benefit Tanzania’s economy through job creation and revenue generation from mineral exports.
The Government of Tanzania has expressed support for the Epanko project, highlighting its potential to contribute to national development goals. The 25-year Special Mining Licence granted in 2025 underscores the government’s commitment to fostering private-sector investment in the mining sector. However, critics have called for greater transparency in the project’s environmental impact assessments and community engagement efforts.
As the Epanko project moves toward a Final Investment Decision, its outcome will serve as a benchmark for future graphite developments in Tanzania. The combination of cost efficiency, strategic partnerships, and international funding positions the project to play a pivotal role in the country’s mining industry, while also addressing global demand for sustainable battery materials.