Magnis Energy Technologies Ltd (ASX:MNS, OTCQX:MNSEF) continues to advance its wholly-owned Nachu Graphite Project in Tanzania towards production.
The lithium-ion battery company is working on an updated bankable feasibility study (BFS), constructing a resettlement village and gearing up to deliver on a major offtake agreement in the years to come.
Here’s what’s on Magnis’ agenda heading into 2022.
Bankable feasibility study
As Magnis gears up for the next phase of Nachu’s development, it’s tapped a global engineering group to complete an updated BFS for the graphite asset.
Thanks to the company’s recent offtake deal with Traxys — more on that below — there’s been a buzz of interest from other potential customers and funders.
As a result, Magnis has opted to update the feasibility study to an annual graphite production rate of 220,000 tonnes.
That metric is very similar to the findings from a 2016 study— but in this case, Ausenco will redesign the process plant for capital and operating cost efficiency.
In addition, the updated BFS will review power generation options with a strong focus on assisting the local community.
Over time, Nachu’s high-grade graphite production profile will include:
- 20,000 tonnes per annum of +500 micron (+35 mesh Super Jumbo) at 98.5% total graphitic carbon;
- 70,000 tonnes per annum of +300 micron (+50 mesh, Jumbo) at 98.5% total graphitic carbon; and
- 130,000 tonnes per annum of 300 micron (- 50 mesh) at +99% total graphitic carbon.
Magnis says it’s able to generate large-size fraction and high purity graphite products from Nachu thanks to the quality of the flake that naturally occurs in mineralisation.
Now, it’s working on a process that will take advantage of these natural attributes.
Resettlement village
Recently, Magnis completed basic infrastructure works on the project’s resettlement village, including work on a boundary road.
The company has also appointed a contractor and project manager to erect the village.
Magnis chairman Frank Poullas said: “We are proud to be involved in many social programs which will improve the lives of the local community.
“It has and always will play an important role in the company.
“We continue to work hard to progress our Nachu Graphite Project and we believe the green attributes of the project of being able to produce battery anode material without the need for chemical purification will be a game-changer in the marketplace.”
Traxys binding offtake agreement
In late December, Magnis inked a binding offtake agreement with Traxys to deliver and sell high-quality, high purity natural flake graphite from Nachu.
Under the terms of the agreement, which will begin in the second half of 2024, 600,000 tonnes of high purity graphite — across all flake sizes — will be purchased over a six-year period at market prices.
About Magnis
Magnis Energy Technologies is a vertically integrated lithium-ion battery company with strategic investments in several aspects of the electrification supply chain, including the manufacture of green credentialed lithium-ion battery cells, leading-edge lithium-ion battery technology and high-quality, high-performance anode materials.
The company’s vision is to enable, support and accelerate the green energy transition, which remains central to the adoption of electric mobility and renewable energy storage.