EcoGraf Reports US$105M Loan Mandate and Expanded Mining Licence

Financing Milestone for Epanko Graphite Mine

EcoGraf Limited (ASX: EGR) has taken a significant step forward in developing its Epanko Graphite Mine in Tanzania by securing a mandate from KfW IPEX-Bank for a senior loan facility of up to US$105 million. This financing, backed by the German Government’s UFK program, is subject to due diligence and regulatory approvals but represents a crucial foundation for the construction phase of the project.

The loan mandate aligns with EcoGraf’s strategy to vertically integrate its battery anode materials supply chain, underpinning long-term production capacity to meet growing demand for lithium-ion battery components.

Expanded Mining Licence and Environmental Compliance

In tandem with financing progress, EcoGraf has been granted Special Mining Licence SML755/2025, effectively doubling the mining area to support planned expansion. The enlarged licence covers a continuous strike length of 5.5 kilometres and an average width of 200 metres, encompassing a measured and indicated resource of 88 million tonnes at 7.6% total graphitic carbon (TGC).

Environmental and social planning programs have been rigorously advanced, with EcoGraf aligning its practices with international standards including the Equator Principles, Global Industry Standard on Tailings Management (GISTM), and Tanzanian legislation. The updated Environmental and Social Management Plan (ESMP) and Resettlement Action Plan (RAP) have been independently reviewed and approved by government authorities, demonstrating the company’s commitment to sustainable and responsible mining.

Midstream Development and Cost Advantages

EcoGraf completed an independent engineering study for its Mechanical Shaping Facility in Tanzania, estimating a capital cost of US$58.6 million and operating costs of US$419 per tonne. The study highlights significant power and transport cost advantages due to the Tanzanian location, supported by access to clean hydropower and proximity to export infrastructure.

The Mechanical Shaping Facility will process natural flake graphite into spherical graphite, a critical precursor for battery anode materials. Discussions with the European Union Commission suggest potential support and incentives for this midstream development, with further engagement planned at the upcoming EIT Raw Materials Summit in Brussels.

Downstream Purification and Intellectual Property Progress

Operational campaigns at EcoGraf’s HFfree® Purification Facility have successfully met stringent customer specifications for purified spherical graphite, maintaining key physical properties essential for battery performance. The company has signed non-binding agreements to support sales and further development of purification capacity.

EcoGraf is advancing its intellectual property portfolio, with the US Patent and Trademark Office granting a patent for its purification method and a second patent application progressing in Australia. These patents provide broad coverage for the environmentally superior HFfree® purification process, which also supports battery anode recycling initiatives aimed at reducing CO2 emissions and lowering material costs.

Community Engagement and Corporate Social Responsibility

EcoGraf continues to foster strong community relations through initiatives such as the handover of a medical dispensary to the Epanko community and the successful Pre-International Women’s Day event, which empowers local women through sustainable income projects. These efforts complement the company’s environmental and social governance framework and underpin its licence to operate in Tanzania.

At quarter-end, EcoGraf reported cash and cash equivalents of AUD 14.4 million, supporting ongoing pre-development activities, community programs, and corporate operations.