Australian graphite developer Magnis Resources (ASX:MNS) recently signed a Memorandum of Understanding (MoU) with Russia’s nuclear corporation ROSATOM for project financing and offtake of its Nachu graphite project in southeast Tanzania.
Under the MoU, both organizations will work together towards a binding offtake agreement once further negotiations take place and certain milestones are met.
“Interest revolves around the Super Jumbo (+500 microns) and Jumbo (+300 microns) flake graphite sizes. The larger flake sizes are currently being consumed by ROSATOM in several of its business divisions including nuclear power generation, aerospace and creating composites,” Magnis indicates.
Frank Poullas, Chairman of Magnis, commented: “Today’s announcement is a key step towards a binding offtake agreement for our Super Jumbo and Jumbo products and potential financing with the world’s largest nuclear power technology company.”
“ROSATOM is the world leader in the development and construction of nuclear reactors with over USD130b worth of orders in place. Larger flake graphite which our Nachu Project will produce is a key material used in these nuclear reactors and it is highly sought after. Our project therefore is strategically important to ROSATOM over the longer term.”
“The Magnis board looks forward to a long fruitful relationship with ROSATOM and our focus now is to move the MOU into a binding offtake agreement.”
Alexander Merten, President of ROSATOM, added: “We are pleased to enter into this MoU with Magnis. ROSATOM is known for the quality of its products and we are seeking to develop long term partnerships with the highest quality graphite producers in the world. Magnis has these key attributes.”
Nachu Graphite Project
The Nachu graphite project in southeast Tanzania is 100% owned by Magnis and represents one of the largest mineral resources of large flake graphite in the world.
The Nachu operating life is estimated at approximately 15 years. “This comprises approximately 11.7 years at 240,000 tpa nameplate concentrate output after which lower grade ore stockpiles are processed for another 3.5 years at an average concentrate output rate of 160,000 tpa,” as indicated in the Magnis website.
ROSATOM, through its subsidiary Uranium One, is the owner of the Mkuju River uranium project located in southern Tanzania.
Tanzania’s largest graphite deposits are located in the central and east southern regions of the country.
At the end of 2015, The Tanzanian Ministry of Energy and Minerals (MEM) announced that Tanzania will soon become one of the largest producers of graphite in the world, due to recent and abundant discoveries of graphite fields across the country.
Graphite discoveries in Tanzania come mainly from Australia based graphite developers, Magnis Resources (ASX:MNS), Volt Resources (ASX:VRC) and Kibaran Resources (ASX:KNL).