Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Magnis Energy Technologies (MNS) has executed a binding engineering, procurement and construction contract with Metallurgical Corporation of China
  • This contract will provide a turn-key solution for a 240,000 tonne per annum graphite production facility at Magnis’ Nachu Project in Tanzania
  • The fixed price for the turn-key solution is $406 million, which is the completed cost of the 240,000tpa plant
  • Magnis is currently up 8.25 per cent with shares trading for 10.5 cents apiece

Magnis Energy Technologies (MNS) has executed a binding engineering, procurement and construction contract with Metallurgical Corporation of China.

This contract will provide a turn-key solution for a 240,000 tonne per annum (tpa) graphite production facility at Magnis’ Nachu Project in Tanzania.

The Nachu Project has a global mineral resource estimate of 174 million tonnes at an estimated grade of 5.4 per cent graphitic carbon and represents one of the largest mineral resources of flake graphite in the world.

As per the engineering, procurement and construction (EPC) contract, the fixed price for the turn-key solution is US$277 million (AUD$406 million), which is the completed cost of the 240,000tpa plant.

The execution of this EPC contract is the culmination of work untaken over the last 12 months by projects teams from both Magnis and Metallurgical Corporation of China (MCC).

This work involved the MCC team spending a month in Tanzania and a week in Australia, with Magnis taking multiple trips to China.

The execution of the EPC contract is an important prerequisite in the application for project financing support from the China Export Credit Agency.

Funding applications and negotiations with the agency have already begun and Magnis and MCC are continuing further negotiations regarding the closure of residual project funding amounts.

“The Nachu project is very unique and is one of the most impressive graphite projects I have seen to date,” Vice President of MCC International Wang Zhou commented.

“In particular, our team has been very impressed with the high purity products it can produce, minus any purification, and we look forward to working with Magnis in achieving a world class operating graphite mine,” he added.

Magnis is currently up 8.25 per cent with shares trading for 10.5 cents apiece at 12:09 pm AEDT.

MNS by the numbers
More From The Market Herald

" TMK Energy (ASX:TMK) begins drilling Snow Leopard-2

TMK Energy (ASX:TMK) has begun drilling the Snow Leopard-2 well, located at the Gurvantes XXXV coal…

" Li-S Energy (ASX:LIS) lands up to $5m in funding under govt.’s Trailblazer University program

Li-S Energy (ASX:LIS) has been selected as a cornerstone partner with Deakin University in its Recycling…

" Karoon Energy (ASX:KAR) commences Bauna intervention campaign

Karoon Energy (ASX:KAR) has commenced its Baúna intervention campaign, following the receipt of all permits and…

" Calima Energy (ASX:CE1) provides drilling updates across portfolio for Q3 2022

Calima Energy (ASX:CE1) has provided an update on plans for four of the company's drilling programs…