How EV1 Plans to Kickstart Chilalo Graphite Mining by October 2027
Evolution Energy Minerals has fast-tracked its Chilalo Graphite Project in Tanzania, aiming to begin ore mining by late 2027 amid strong government partnership and advancing financing talks.
- Accelerated development schedule targeting October 2027 first ore mining
- Resource drilling to upgrade and expand Chilalo graphite reserves
- Exploration program launched at Chikundo Copper Project
- Advancing project financing with international banks and sovereign funds
- Commitment to local content and partnership with Tanzanian government
Accelerated Timeline Signals Confidence
Evolution Energy Minerals (ASX, EV1) has announced a significant acceleration in the development of its Chilalo Graphite Project in Tanzania, moving the target for first ore mining forward to October 2027. This revised timeline reflects a renewed confidence in the project’s fundamentals and the strategic importance of natural graphite amid global supply diversification efforts.
The company’s subsidiary, Kudu Graphite Limited, which holds the mining licence, has engaged constructively with the Tanzanian government, which retains a 16% free-carried interest in the project. This partnership underscores a shared commitment to advancing Tanzania’s industrialisation agenda and ensuring local economic benefits through compliance with mining local content regulations.
Resource Expansion and Exploration Initiatives
To underpin the accelerated development, EV1 has initiated a resource development drilling program focused on upgrading and expanding the Chilalo graphite resource, particularly targeting the high-grade E1 and E2 prospects near the proposed plant site. These zones offer potential to extend mine life and reduce capital costs by avoiding expensive infrastructure such as river diversions.
Complementing this, EV1 is launching a systematic exploration program at the nearby Chikundo Copper Project. This initiative involves soil sampling, ground geophysics, and drilling to identify new base metal deposits, potentially adding further value to the company’s Tanzanian portfolio.
Downstream Processing and Financing Progress
In parallel with mining development, EV1 is exploring downstream processing opportunities within Tanzania, including graphite purification and anode material production. This aligns with government priorities for local beneficiation and the company’s environmental, social, and governance objectives.
On the financing front, EV1 is advancing discussions with a range of African, European, and Middle Eastern development banks and sovereign funds. These talks aim to secure competitive, long-term funding packages supported by binding offtake agreements and an updated resource base, with formal financing expected by mid-2026.
Navigating Challenges and Looking Ahead
The company acknowledges past delays linked to volatile graphite market conditions and investor uncertainty following a Default Notice, which it has requested be lifted to facilitate investor engagement and construction. With tangible progress in site preparation, environmental assessments, and community resettlement plans, EV1 is positioning Chilalo as one of Africa’s most advanced undeveloped natural graphite projects.
Executive Director Craig Moulton emphasised the company’s disciplined approach to responsible development, highlighting the strategic importance of Chilalo in global supply chains and Tanzania’s mining sector.
Bottom Line?
As EV1 accelerates Chilalo’s path to production, the coming months will be critical in securing financing and delivering on drilling results that validate this ambitious timeline.
Questions in the middle?
- Will the Default Notice be officially lifted to unlock full investor confidence?
- How will evolving graphite market dynamics impact project financing and pricing?
- What are the prospects for downstream processing to add significant value locally?
