Magnis recently announced that they had commenced an updated Feasibility Study of the Nachu Graphite Project in Tanzania with Ausenco. This comes off the back of their recent binding offtake agreement with Traxys Europe for 600k tonnes of natural flake graphite over 6 years. Ausenco is a well-known engineering consultancy with their head office in Brisbane and project offices in many of the major mining areas of the world. See www.ausenco.com.au for further information on their experience.
A Feasibility Study is a study and report into the economic and technical aspects of the proposed development. Also known as a Bankable Feasibility Study (BFS) or Definitive Feasibility Study (DFS) the report will form the basis for the decision by the Magnis Board to proceed with the project. The study will also be used by any financial institutions for their due diligence process prior to any funding being agreed for beginning construction.
Magnis discovered graphite outcrops on the Nachu tenement in late 2012 and commenced exploration of the Nachu graphite in early 2013. By late 2014, the company had sufficient mineral resource and information to complete a pre-feasibility study (PFS) on the project. The positive results of the PFS allowed the board to decide to continue further development which resulted in a BFS being completed in early 2016. This study was conducted by Logiman Ltd (Johannesburg) and then reviewed and augmented by Sedgman Pty Ltd (Brisbane). In 2015, the Environmental, Social Impact Assessmen (ESIA)t was sent to the Tanzanian National Environmental Management Commission (NEMC) who approved the document and granted the Environmental Certificate for the project. This was a pre-requisite for the granting of the Special Mining Licence in late 2015.
The 2022 BFS update will be based on a processing plant treating 5 million tonnes of graphite ore per year which was the same basis as the 2016 BFS. By maintaining the same design criteria for the project, all critical infrastructure facilities such as the tailings storage facility and water supply dam locations and the mine designs will all remain effectively the same as the 2016 study. However, Ausenco have a lot of experience in producing capital efficient process plant designs, so they will redesign the process plant layout for a more efficient capital cost and operating cost outcome.
In the 2016 study, power generation was planned to be done via generators using heavy fuel oil. Over the last few years, Magnis has been reviewing options for alternative power options and as part of the BFS, Ausenco will review the two key options of national grid connection or constructing a 90km pipeline from the 900mm natural gas main connecting the Mtwara region gas fields to Dar es Salaam. The grid power in Tanzania is a mix of gas fired power stations and hydroelectrical generation.
Ausenco has been working with Magnis on this project from late 2016 when they conducted a review into the project through to 2021 when a process review was conducted. Supporting Ausenco on the project will be several specialist consultancies who were also involved during the 2016 study.
- Orelogy (Perth) are the mining consultants who will update the mine design based on the new 2022 cost estimates
- Knight Peisold ( Johannesburg office ) will continue to assist with any update requirements from the Ausenco on Tailings Dam and the water balance and water infrastructure
- Digby Wells Environmental, an international consultancy with head office in Johannesburg and Paulsam Ltd , a well-respected Tanzanian consultancy will provide any further environmental assistance required.