Tanzania’s Epanko Graphite Project Could Boost Output by 20%

EcoGraf Limited (ASX: EGR; FSE: FMK) has identified a potential 20% increase in Stage 1 nameplate production capacity at its Epanko Graphite Project in Tanzania to 87,600 tonnes per annum.

The increase goes alongside a 5.8% reduction in operating costs, following a Value Engineering Review released on 24 September 2026.

The review found that the higher throughput could be delivered with no material design changes to the nameplate layout of the Bankable Feasibility Study (“BFS”), for a preliminary USD 12.0 million increase in initial capital compared with the Updated BFS.

The existing 73,000 tonnes per annum Updated Bankable Feasibility Study (“Updated BFS”), released in February 2026, remains the basis for Epanko’s development and debt financing, with the potential increase to 87,600 tonnes per annum to be finalised only following a Final Investment Decision (“FID”).

Engineering studies on the expansion case will be advanced to Bankable Feasibility Study level, assisted by a European Investment Bank (EIB) Technical Assistance grant of up to EUR 2 million (AUD 3.2 million) for independent technical, environmental and social, and market studies.

The capacity increase would support the initial development of a single 25,000 tonnes per annum HFfree Battery Anode Material (“BAM”) facility, part of the Company’s expanding development initiatives in Europe, Asia and the United States.

EcoGraf also reported positive progress on strategic equity and offtake discussions, supported by industry interest in its HFfree purification technology and downstream battery materials strategy, following an agreement with Mitsubishi Chemical Corporation for up to 10,000 tonnes per annum of purified spherical graphite.

The review, undertaken by the Company’s consultant METC-PaulSam JV, found that much of Epanko’s existing plant design, including the major crushing, grinding and flotation circuits, can accommodate higher throughput with limited modification, reflecting conservative design assumptions adopted during the BFS and Front End Engineering Design stages.

Key improvements identified include selective additions to flotation capacity, minor classification and screening upgrades, and potential optimisation of concentrate filtration and drying circuits, with approximately 44% of major equipment requiring modification, most of it assessed as modular and low complexity.

The estimated incremental capital cost of approximately USD 12.0 million includes USD 5.5 million for the processing plant and USD 6.5 million for the tailings storage facility, and falls within the Updated BFS’s existing USD 22 million contingency allowance.

Updated mining and processing schedules used the existing mine design and current Ore Reserve, unchanged at 16.7 million tonnes at 8.2% total graphitic carbon (“TGC”), comprising 7.1 million tonnes of Proved and 9.6 million tonnes of Probable reserves.

The potential 20% increase in throughput would shorten the project’s life of mine (“LOM”) to 20 years, from the 22 years disclosed in the Updated BFS, though the revised plan remains derived solely from the existing Ore Reserves without relying on any Inferred Mineral Resources or exploration targets.

EcoGraf has not yet quantified, and the announcement does not disclose, an updated net present value or internal rate of return for the potential 20% increase, with any change in project value to be assessed alongside the EIB-supported technical assistance work.

The review indicates C1 operating costs of approximately USD 515.9 per tonne of concentrate sold over the life of mine and USD 512.3 per tonne for the first 10 years of processing, free-on-board Dar es Salaam, down 6.8% and 5.8% respectively from the USD 553.3 and USD 544.0 per tonne estimated in the Updated BFS.

Including royalties, levies and sustaining capital, estimated all-in sustaining costs (“AISC”) would fall to approximately USD 615.4 per tonne over the life of mine and USD 610.8 per tonne for the first 10 years, reductions of 5.5% and 4.4% respectively from the Updated BFS.

The Epanko Graphite Project

Epanko, located in the Mahenge Graphite Province approximately 370 kilometres from Dar es Salaam, is developed and operated by Duma TanzGraphite, in which EcoGraf holds an 84% interest alongside a 16% free-carried interest held by the Government of Tanzania.

The Government granted Duma TanzGraphite a 25-year Special Mining Licence for Epanko in March 2025, expanding the licensed mining area from 9.6 to 18.9 square kilometres.

EcoGraf’s most recent Mineral Resource estimate for Epanko, a 127% increase announced in March 2024, put the deposit at 290.8 million tonnes at 7.2% total graphitic carbon for 21.0 million tonnes of contained graphite, among the largest development-ready graphite resources in Africa.

The Company holds existing sales agreements for Epanko graphite products with Germany’s ThyssenKrupp AG, Japan’s Sojitz Corporation and a major European trading group.