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Magnis taps Metallurgical Corp. of China for Nachu graphite production facility

Magnis Energy Technologies Ltd. executed a binding engineering, procurement and construction contract with Metallurgical Corp. of China Ltd. to secure a turn-key solution for a 240,000-tonne-per-annum graphite production facility at the Nachu project in Tanzania.

The US$277 million contract includes the processing plant, infrastructure including roads, power, workers camps and storage facilities.

The company said Dec. 11 that it has started negotiations to secure project financing support from the China Export Credit Agency. Meanwhile, Magnis and the contractor are in talks to close the residual project funding amounts, with the objective of reducing the equity portion.

The meetings have targeted financing of at least 80% in debt or delayed payments, and final outcomes are expected in the first half of 2020.