Friday, 4 September 2015

Australia’s Kibaran Sees Tanzania Emerging as a Graphite Hub to Counter Chinese Dominance


Australia’s Kibaran Sees Tanzania Emerging as a Graphite Hub to Counter Chinese DominanceThe Australian company which is the only listed graphite entity globally with a binding offtake agreement with a partner outside of China says it is now focused on negotiating further additional offtake agreements with Japanese and United States traders and end users.


Addressing the second day in Perth today of the Paydirt 2015 Africa Down Under Conference, Perth-based Kibaran Resources Managing Director, Mr Andrew Spinks, said the reality of the global graphite-graphene market was that a large part of future sales in the near to medium term would be on the spot market.

“Traders will be monitoring the emergence of a range of graphite projects of varying grades and product offerings under development now from any number of jurisdictions and all looking for sales so they will be in a position to lock in shorter term off-take contracts before the market matures and steadies and moves to longer term arrangements,” Mr Spinks said.

“In this environment, Europeans have a rich and leading history in graphite product identification and development and have been at the leading edge of investigating new sources of large flake graphite. “It has been pleasing to see Kibaran’s flagship Epanko deposit in Tanzania included in Europe’s preferred listing of new supply.”

Kibaran has of late signed a total of 30,000 tonnes per annum offtake agreements for 10 years with Germany’s ThyssenKrupp (20,000tpa) and a further 10,000tpa binding offtake agreement with a sophisticated European graphite market trader.

Its production aspirations and mine construction timetables were also boosted this week when it secured German Government backed and guaranteed bank lending support for its Epanko project to provide lenders of project finance, insurance against commercial and political risk.

Mr Spinks described this support as the first major milestone in the Company’s debt funding process for Epanko. “These partnerships with Germany are critical as they discovered graphite, have been working with it for centuries and have led the charge on development of graphite use in modern era battery technologies,” he said.

Kibaran has three graphite projects in Tanzania – Epanko, Tanga and Merelanji-Arusha. The Company – which has announced favourable results of a bankable feasibility study into Epanko backing a US$77.5 million 40,000tpa concentrate mine and a pre-tax NPV of US$197.5 million - said the graphite endowment of Tanzania was cost competitive with existing Chinese supply and offered substantial technical advantages over its Chinese opposition. Read More...

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