EcoGraf Unlocks 20% Output Boost at Epanko With Costs Falling 6.8%
Key Takeaways
- A Value Engineering Review by METC-PaulSam JV has identified a potential 20% increase in Epanko Stage 1 nameplate production capacity, lifting throughput from 73,000tpa to 87,600tpa.
- The incremental capital cost to achieve the expansion is estimated at just US$12.0 million — sitting comfortably within the Updated BFS's existing contingency allowance of US$22 million, requiring no material redesign.
- C1 operating costs are projected to fall 6.8% over the life of mine to US$515.9/t, with AISC dropping 5.5% to US$615.4/t, improving project economics at any graphite price.
- The expanded 87,600tpa production profile would support the development of a single 25,000tpa HFfree Battery Anode Material facility in Europe, Asia, or the U.S., advancing EcoGraf's downstream strategy.
- Engineering studies on the expansion case will be progressed to BFS level, funded in part by the European Investment Bank's Technical Assistance grant of up to €2 million (A$3.2 million).
Epanko value engineering unlocks 20% production upside
EcoGraf Limited (ASX: EGR) has completed a Value Engineering Review for the Epanko Graphite Project, identifying a potential 20% increase in Stage 1 nameplate production capacity, from 73,000tpa to 87,600tpa. The review was undertaken by the company’s consultant, METC-PaulSam JV, and signals meaningful operational upside ahead of a Final Investment Decision (FID).
The 73,000tpa Updated BFS (February 2026) remains the base development and debt financing case. The potential increase to 87,600tpa is expected to be finalised following FID, with engineering studies to be progressed to BFS level. The increased capacity would also support the development of a single 25,000tpa HFfree Battery Anode Material (BAM) facility in Europe, Asia, or the U.S.
Key outcomes from the review include:
- Potential 20% increase in Stage 1 nameplate production capacity, from 73,000tpa to 87,600tpa
- C1 operating costs estimated to reduce by 5.8% to approximately US$512/t for the first 10 years
- Incremental capital cost estimated at US$12.0 million (AACE Class 4 estimate), within the Updated BFS contingency allowance of US$22 million
- Increased capacity would support the development of a single 25,000tpa HFfree Battery Anode Material (BAM) facility
- Engineering studies on the expansion case to be progressed to BFS level, assisted by the European Investment Bank (EIB) Technical Assistance grant of up to €2 million (A$3.2 million)
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What the review found — and what it costs
Modest capital outlay for meaningful capacity gain
The estimated incremental capital cost to achieve the 20% throughput increase is US$12.0 million, prepared as an AACE Class 4 estimate. This breaks down to US$5.5 million for the processing plant and US$6.5 million for the tailings storage facility (TSF).
Critically, this US$12.0 million sits within the Updated BFS’s existing contingency allowance of US$22 million, meaning no material redesign of the BFS nameplate layout is required. Approximately 44% of major equipment would require modification, with most upgrades assessed as modular and low complexity.
The review reflects the benefit of the original plant design, which incorporated conservative scale-up factors and equipment sizing, particularly within the flotation circuits. Key plant improvement areas identified include:
- Selective additions to flotation capacity
- Minor classification and screening upgrades
- Potential optimisation of concentrate filtration and drying circuits
Operating costs fall as throughput rises
The Value Engineering Review indicates that higher throughput translates directly into lower unit operating costs. C1 cost over the life of mine (LOM) is estimated to fall from US$553.3/t to US$515.9/t, a reduction of 6.8%. For the first 10 years of processing, the C1 cost is estimated at US$512.3/t, down 5.8% from US$544.0/t in the Updated BFS.
All-In Sustaining Cost (AISC), which includes royalties, levies, and sustaining capital, follows a similar trajectory. LOM AISC is estimated at US$615.4/t, down 5.5% from US$650.9/t, while the first 10-year AISC falls to US$610.8/t from US$639.0/t, a reduction of 4.4%.
| Operating Cost (US$/t, FOB Dar es Salaam) | Updated BFS LOM | Updated BFS First 10 Years | VE Review LOM | VE Review First 10 Years |
|---|---|---|---|---|
| C1 Cost FOB Dar es Salaam | 553.3 | 544.0 | 515.9 | 512.3 |
| All In Sustaining Cost (AISC) | 650.9 | 639.0 | 615.4 | 610.8 |
All figures are in real 2025 US dollars. Rounding errors may occur.
Understanding graphite project value engineering — and why it matters
A value engineering review is a structured process aimed at identifying efficiencies in plant design, throughput capacity, and cost structure within an already-designed mining project. It is not a full feasibility study. Rather than starting from scratch, it examines the existing plant layout and asks where conservative design margins can be better utilised to extract more output at lower cost per unit.
Importantly, a value engineering review is prepared to a lower level of accuracy and confidence than a Bankable Feasibility Study (BFS). A BFS is a comprehensive, independently verified document that forms the basis for major investment and financing decisions. A value engineering review, by contrast, is an optimisation study and has not been independently verified. There is no certainty that any increase in project value will be realised.
Two key cost metrics matter most to mining investors evaluating a project like Epanko. C1 cost refers to the direct cash cost of producing and selling a tonne of concentrate, including mining, processing, and transport to the point of sale. AISC (All-In Sustaining Cost) goes further, adding royalties, levies, and sustaining capital expenditure to give a fuller picture of what it costs to keep the mine running over its life.
Lower unit operating costs strengthen a project’s economics in three ways: they improve project margins at any given commodity price, they support the financing case by demonstrating operational efficiency, and they enable more competitive pricing for offtake customers. For Epanko specifically, the original conservative plant design created natural headroom that this review has now identified and quantified.
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Epanko’s strategic position strengthens ahead of FID
Production profile and mine life
The potential 20% throughput increase would revise the life of mine plan to 20 years, down from 22 years in the Updated BFS. The same total ore is extracted faster rather than over a longer period, meaning the Ore Reserve remains entirely unchanged.
The Ore Reserve stands at 16.7Mt at 8.2% TGC, comprising approximately 43% Proved and 57% Probable Ore Reserves. No Inferred Mineral Resources have been included in the Ore Reserve. The Ore Reserve estimate has not been updated as a result of the Value Engineering Review and is not required to be.
| Category | Proved Tonnes (Mt) | Proved Grade (% TGC) | Probable Tonnes (Mt) | Probable Grade (% TGC) | Total Tonnes (Mt) | Total Grade (% TGC) |
|---|---|---|---|---|---|---|
| Oxide | 4.9 | 8.8 | 8.3 | 7.9 | 13.3 | 8.2 |
| Transitional | 1.0 | 7.9 | 0.6 | 7.9 | 1.5 | 7.9 |
| Fresh | 1.2 | 8.3 | 0.7 | 8.4 | 1.9 | 8.3 |
| Total | 7.1 | 8.6 | 9.6 | 7.9 | 16.7 | 8.2 |
The company has not yet quantified, and this announcement does not disclose, any updated net present value (NPV) or internal rate of return (IRR) for the potential 20% increase. Any potential increase in project value will be assessed in conjunction with further technical assistance supported by EIB grant funding.
The Epanko debt financing process has been advancing in parallel with this technical work, with the US$105 million facility representing the primary funding mechanism underpinning the Updated BFS development case and FID timeline.
EIB grant and pathway to BFS-level expansion study
Engineering studies on the expansion case are to be progressed to BFS level, assisted by the EIB Technical Assistance grant of up to €2 million (A$3.2 million) for independent technical, environmental and social, and market studies. The EIB grant, announced on 21 September 2026, provides institutional backing for the next phase of study work. This independent technical validation signals that the Epanko project has attracted the attention of a major multilateral development finance institution.
Strategic partnerships and downstream momentum
EcoGraf reports positive progress on strategic equity and offtake discussions, supported by industry interest in the company’s HFfree® purification technology and its downstream battery materials strategy. The agreement with Mitsubishi Chemical Corporation for up to 10,000tpa of purified spherical graphite (SpG) is cited as a key reference point for this commercial momentum.
The increased Epanko production capacity, if ultimately approved following FID, would support the initial development of a single 25,000tpa HFfree Battery Anode Material (BAM) facility. Potential locations span Europe, Asia, and the U.S., consistent with EcoGraf’s strategy to establish purification facilities in close proximity to electric vehicle, battery, and anode manufacturers.
Battery Anode Material facility strategy has been a consistent thread in EcoGraf’s development narrative, with site selection for the 25,000tpa processing plant driven by proximity to established EV and battery cell manufacturing clusters in Europe, Asia, and the United States.
This work is being undertaken alongside the debt financing process and ongoing engagement with midstream and downstream partners, as the company advances Epanko and its vertically integrated battery anode materials business. The announcement was authorised for release by Andrew Spinks, Managing Director.
Ready to Explore the Epanko Graphite Project’s 20% Production Upside?
EcoGraf’s Value Engineering Review has identified a compelling pathway to lift Stage 1 nameplate capacity from 73,000tpa to 87,600tpa, while simultaneously reducing C1 operating costs by up to 6.8% — all within the existing BFS contingency allowance.
Discover the full details of EcoGraf’s Epanko project, its HFfree® battery anode materials strategy, and the road to Final Investment Decision by exploring EcoGraf (ASX: EGR) on Discovery Alert.