EcoGraf has partnered with NMB Bank to manage compensation payments for communities affected by its Epanko Graphite Project, marking a key step in early works on the Mine Access Road ahead of construction.
- NMB Bank appointed for secure compensation payments
- Early works on Mine Access Road underway
- Compensation aligns with IFC standards and Equator Principles
- Reduces construction risk and supports project financing
- Mine Access Road provides reliable dual site access
NMB Bank Partnership Secures Community Compensation
EcoGraf Limited (ASX:EGR) has formalised a crucial partnership with Tanzania's NMB Bank PLC to administer compensation payments to Project Affected Persons (PAPs) under the Resettlement Action Plan for its Epanko Graphite Project. This move establishes a transparent and secure framework for cash compensation, supported by financial literacy training to help affected communities manage their funds effectively. The partnership underscores EcoGraf's commitment to responsible community engagement and compliance with International Finance Corporation (IFC) Performance Standards.
The appointment of NMB Bank, a leading domestic bank with extensive reach in Tanzania including Mahenge, is a strategic choice. The bank will open individual accounts for PAPs residing along the planned northern Mine Access Road, facilitating direct payments and reducing the risk of delays or mismanagement. NMB Bank's experience with large infrastructure and mining compensation programs adds a layer of reliability to this process.
Mine Access Road Early Works Signal Project Momentum
The compensation payments mark the first tangible early works activity on the Epanko Project, focusing on the Mine Access Road. This infrastructure is pivotal, designed as an all-weather, dual access route that bypasses Mahenge township to enhance safety and logistics. With detailed designs completed by Knight Piésold and the construction tender process underway, the road's development is well advanced.
Completion of compensation for farmland impacted by the road clears the way for immediate mobilisation and construction once EcoGraf secures financing and makes the Final Investment Decision (FID). This proactive approach to early works reduces execution risk, particularly by mitigating wet-season access constraints that have previously threatened construction schedules. The road complements last year’s upgrade of the Southern Access Road, ensuring reliable dual access to the site throughout the mine’s life.
Alignment with Financing and Sustainability Standards
The compensation framework aligns with the Equator Principles and IFC Performance Standards, reflecting EcoGraf’s financing strategy with KfW IPEX-Bank. The German lender has mandated a senior secured loan facility of up to US$105 million for the project under the German Untied Loan Guarantee scheme, with the compensation process forming a critical component of social risk management.
EcoGraf’s recent update to the Bankable Feasibility Study, which revealed a US$516 million NPV and production increase to 73,000 tonnes per annum, sets a robust backdrop for financing discussions. The compensation agreement and early works demonstrate tangible progress toward construction readiness, complementing the company’s vertically integrated graphite and battery anode materials strategy, including recent supply talks with Mitsubishi Chemical and expansion plans for HFfree® purification technology non-binding MOU with Mitsubishi Chemical.
EcoGraf’s broader Tanzanian operations also include gold exploration initiatives with AngloGold Ashanti, highlighting a diversified approach to resource development in the region AngloGold Ashanti farm-in agreement.
Compensation Limited to Farmland, Not Displacement
Importantly, the current compensation scope is confined to farmland affected by the Mine Access Road and does not involve physical displacement of households. This enables the process to be delivered entirely through formal banking channels, reducing complexity and ensuring compliance with international standards. Future compensation activities related to the mine site itself will proceed under the Resettlement Action Plan in line with IFC and Equator Principles, maintaining consistency with project financing requirements.
By advancing compensation and early works ahead of FID, EcoGraf signals confidence in the Epanko Project’s viability and readiness. The Mine Access Road will be a vital artery for construction logistics, mitigating weather-related delays and underpinning the project’s execution timeline.
Bottom Line?
EcoGraf’s appointment of NMB Bank and commencement of Mine Access Road compensation marks a tangible step toward construction readiness, but the timing of full financing and FID remains a pivotal watchpoint.
Questions in the middle?
- When will EcoGraf finalise the Epanko Project’s financing and make the Final Investment Decision?
- How will the Resettlement Action Plan evolve beyond farmland compensation to address mine site impacts?
- What impact will reliable dual access have on mitigating construction risks during Tanzania’s wet season?