EQS-News: Completion of Epanko Resettlement Action Plan

Completion of Epanko Resettlement Action Plan

Completion follows Major Community Work Programs

EcoGraf Limited (“EcoGraf” or “the Company”) (ASX: EGR; FSE: FMK) is pleased to announce that the updated Resettlement Action Plan (RAP) has been completed for its Epanko Graphite Project (Epanko or the Project) in Tanzania. The RAP will now be submitted to the Ulanga District Council and other relevant government authorities. This is the culmination of the past two years' work on the Epanko community resettlement, including the re-valuation of all Project-affected households’ assets, extensive engagement with the local community and stakeholders and significant input from the Independent Technical Experts as part of the debt financing due diligence process.

Key Highlights

• Completion of critical path milestone required prior to debt financing
• RAP compiled to meet International Finance Corporation (IFC) Performance Standards and Equator Principles
• Land delineation, asset and socio-economic surveys completed for all Project-affected persons (PAPs)
• RAP implementation includes development of a resettlement area and extensive livelihood restoration programs
• Cost estimates align with the 2023 updated Total Capital Cost¹

Overview

The completion of the RAP report marks the end of the RAP planning stage, with the implementation stage already initiated. Registration of PAPs with the National Identification Authority (NIDA) is in progress, which is a prerequisite for the opening of bank accounts for the payment of compensation.

The RAP serves as the Company’s overarching document for guiding the land access and resettlement planning for the Project and sets out a comprehensive plan to address physical and economic displacement of households. The current plan builds on the RAP that was completed and assessed in 2017, but could not be implemented due to the changing regulatory environment at that stage.

The content of the RAP will now be disclosed to affected communities and stakeholders, with copies to be submitted to the Ulanga District and Morogoro Regional Councils for their reference. In addition to the submission to District and Regional authorities, copies of the RAP will be shared with key national government stakeholders including the Ministry of Minerals, Chief Government Valuer, National Environment Management Council (NEMC) and the Ministry of Lands, Housing and Human Settlements Development.

The Company remains in continuous engagement with the Epanko community, via the established Resettlement Working Group (RWG) meetings. The RWG was re-established in August 2023 from members nominated by the community and District government, to provide a clear channel of communication and decision-making for the planning and subsequent implementation of the RAP.

Appointment of Community Liaison Officers is in progress, whose responsibility will be to assist with the smooth execution of all stages of RAP and will act as an important interface between the RAP implementation team and the communities.  All of this is being overseen by the Company’s Manager – RAP who is based on site and has extensive experience implementing RAPs for mining and infrastructure developments throughout Tanzania.

During the planning stage, the Company, in collaboration with the local stakeholders, selected the Mbera-Kitonga and Epanko B area for the development of the resettlement site, including construction of resettlement houses and community infrastructure. This area was preferred by the Epanko community as it allows the project affected households to remain within the greater Epanko community, whilst remaining close to the District capital of Mahenge and with access to fertile agricultural land.

The new resettlement village will include replacement houses for all affected households who choose in-kind compensation, as well as a new primary school, health care facility, and church. To aid the affected households with the transition, the Company will conduct extensive livelihood restoration programs, to ensure existing sources of income can be re-established in the resettlement village, as well as empowering the community with training and equipment for new income activities, with the aim of diversifying sources of income for the community.

Managing Director, Mr Andrew Spinks stated “The re-valuation of the community assets and compilation of the updated Epanko RAP has been a major focus for the team during the past two years and forms one of the major critical path activities for the Project Debt Financing. The Company thanks the community of Epanko and the District and Regional governments, as key stakeholders in the Project, for their strong support and engagement throughout the process, without whom it would not have been possible. Completion of the RAP report marks a key milestone and has been a great team effort.”

This announcement is authorised for release by Andrew Spinks, Managing Director.

For further information, please contact:

INVESTORS 

Andrew Spinks  

Managing Director 

T: +61 8 6424 9002

 

Notes

1. Refer announcement dated 28 April 2023 and titled Epanko Pre-Development Program Delivers Outstanding Results

 

Forward looking statements

Various statements in this announcement constitute statements relating to intentions, future acts and events. Such statements are generally classified as “forward looking statements” and involve known and unknown risks, uncertainties and other important factors that could cause those future acts, events and circumstances to differ materially from what is presented or implicitly portrayed herein. The Company gives no assurances that the anticipated results, performance or achievements expressed or implied in these forward-looking statements will be achieved.

About EcoGraf

EcoGraf is building a vertically integrated battery anode materials business to produce high purity graphite products for the lithium-ion battery and advanced manufacturing markets. Over US$30 million has been invested to date to create a highly attractive graphite business which includes:

• Epanko Graphite Mine in Tanzania;

• Mechanical Shaping Facility in Tanzania; 

• EcoGraf HFfree^® Purification Facilities located in close proximity to the electric vehicle, battery and anode manufacturers; and

• EcoGraf HFfree^® Purification technology to support battery anode recycling.   

In Tanzania, the Company is developing the TanzGraphite natural flake graphite business, commencing with the Epanko Graphite Project, to provide a long-term, scalable supply of feedstock for EcoGraf^® battery anode material processing facilities, together with high quality large flake graphite products for specialised industrial applications.

In addition, the Company is undertaking planning for its Mechanical Shaping Facility in Tanzania, which will process natural flake graphite into spherical graphite (SpG). This mechanical micronising and spheronising is the first step in the conversion of high-quality flake graphite concentrate into battery grade anode material used in the production of lithium-ion batteries.

Using its environmentally superior EcoGraf HFfree^® purification technology, the Company will upgrade the SPG to produce 99.95%C high performance battery anode material to supply electric vehicle, battery and anode manufacturers in Asia, Europe and North America.

Battery recycling is critical to improving supply chain sustainability and the Company’s successful application of the EcoGraf HFfree^®   purification process to recycle battery anode material provides it with a unique ability to support customers to reduce CO₂ emissions and lower battery costs.

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