EcoGraf Eyes 20% Epanko Output Boost to 87,600tpa With Costs Cut 5.8%
Key Takeaways
- A completed Value Engineering Review has identified a potential 20% lift in Stage 1 nameplate production at Epanko, from 73,000tpa to 87,600tpa during the Oxide ore processing phase covering at least the first 12 years.
- The incremental capex required is approximately US$12.0 million — comfortably inside the Updated BFS's existing contingency allowance of US$22 million, meaning no new capital raise is implied by the expansion case.
- C1 costs fall 5.8% to US$512/t for the first 10 years under the higher-throughput scenario, driven by fixed and semi-fixed costs spreading across a greater volume of concentrate.
- Only 44% of major equipment items require modification and the construction timeline remains unchanged at 22 months, limiting execution complexity for the expansion.
- The 87,600tpa production rate would support a single 25,000tpa HFfree® Battery Anode Material facility, with an EIB Technical Assistance grant of up to €2 million already funded to advance the expansion case to BFS level.
Value engineering unlocks 20% production upside at Epanko
EcoGraf (ASX: EGR) is a vertically integrated battery anode materials developer building a mine-to-anode graphite business anchored by the Epanko Graphite Project in Tanzania. A completed Value Engineering Review has identified a potential 20% increase in Stage 1 nameplate production capacity, lifting output from 73,000tpa to 87,600tpa during the Oxide ore processing phase, which covers at least the first 12 years of processing.
The 73,000tpa Updated BFS remains the base development and debt financing case. The 87,600tpa figure is a potential uplift subject to further studies, and there is no certainty the increase will be realised. Key headline metrics from the review include:
- Production increase: 73,000tpa → 87,600tpa (+20%)
- C1 cost reduction: US$544/t → US$512/t (first 10 years, a 5.8% decrease)
- Incremental capex: approximately US$12.0 million (AACE Class 4 estimate)
- Incremental capex sits within the Updated BFS existing contingency of US$22 million
- Only approximately 44% of major equipment items require modification
- Construction timeline unchanged at 22 months
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What the value engineering review found
Conservative design creates headroom for expansion
The review was conducted by consultant METC-PaulSam JV and found that much of the existing plant design, including major crushing, grinding and flotation circuits, can accommodate higher throughput with limited modification. This headroom exists because conservative design assumptions were adopted during the BFS and Front-End Engineering Design stages.
Key upgrades identified include selective additions to flotation capacity, minor classification and screening upgrades, and potential optimisation of concentrate filtration and drying circuits. Approximately 44% of major equipment would require modification, with most upgrades assessed as modular and low complexity.
Importantly, product quality is preserved. The higher-throughput case maintains identical life-of-mine flake size distribution and carbon grades to the Updated BFS: 63.3% of concentrate is greater than 100 mesh, with carbon grades ranging from 95.5% to 97.5% across the four size fractions.
BFS vs value engineering — key metrics at a glance
| Parameter | Unit | Updated BFS (Feb-26) | Value Engineering (Sep-26) | Difference |
|---|---|---|---|---|
| Processing rate | tpa | 850,000 | 1,000,000 | +150,000 |
| Concentrate production (Oxide phase) | tpa | 73,000 | 87,600 | +20% |
| Initial capex | US$M | 181.2 | 193.2 | +12.0 |
| C1 cost (first 10 years) | US$/t | 544.0 | 512.3 | –5.8% |
| AISC (first 10 years) | US$/t | 639.0 | 610.8 | –4.4% |
| Mine life | Years | 22 | 20 | -2 years |
The two-year reduction in mine life is a direct consequence of processing the same ore reserve at a faster rate. All other material parameters, including total ore processed (16.7Mt), strip ratio (0.86:1), processed ore feed grade (8.27% TGC), and processing plant recovery (97.2%), remain unchanged between the Updated BFS and Value Engineering cases.
Understanding graphite value engineering — why it matters to investors
A Value Engineering Review is a targeted study that seeks efficiencies within an existing plant design without redesigning the project from scratch. Think of it as finding how far an already-built engine can be pushed, rather than building a new one.
This review is distinct from a full BFS. It is a first-phase optimisation study, prepared to AACE Class 4 accuracy, which means a project definition level of 1–15% and a cost accuracy range of -15% to -30% on the low side and +20% to +50% on the high side. It has not been independently verified, and investors should treat the 87,600tpa figure as a potential outcome requiring further confirmation, not a committed production target.
Why does higher throughput at lower unit cost matter? Fixed and semi-fixed costs spread across a greater volume of concentrate drive down the cost per tonne produced. That makes the project’s economics more competitive. The C1 cost reductions of 5.8% for the first 10 years reflect exactly this dynamic, as the announcement confirms the reductions principally reflect fixed and semi-fixed costs being spread over a greater volume of concentrate.
The critical risk mitigant for investors is the capex position. The estimated incremental US$12.0 million capital requirement sits within the Updated BFS’s existing contingency allowance of US$22 million.
Downstream implications and strategic momentum
A larger mine supports a bigger purification business
The potential 87,600tpa production rate would support the development of a single 25,000tpa HFfree® Battery Anode Material (BAM) facility, supporting EcoGraf’s expanding development initiatives in Europe, Asia and the U.S. The HFfree® purification technology is central to EcoGraf’s downstream strategy, converting natural flake graphite into high-purity battery anode material without the use of hydrofluoric acid.
HFfree purification economics have been confirmed as globally cost-competitive, a finding that strengthens the investment case for the downstream BAM facility that a higher-throughput Epanko mine would feed.
Market validation for this downstream strategy is progressing. EcoGraf has a Mitsubishi Chemical agreement for up to 10,000tpa of purified spherical graphite (“SpG”), demonstrating customer-level interest in the company’s downstream product offering.
Offtake coverage and next steps
The current offtake position for Epanko production is as follows:
- Binding offtake agreement with tk accelis Trading: 20,000tpa for 10 years
- Binding term sheet with a German graphite trader: 20,000tpa for the first 5 years, scaling to 40,000tpa for the following 5 years, with conversion to a binding agreement ongoing
- No binding offtake has yet been entered into for the incremental 14,600tpa from the Value Engineering case
- EIB Technical Assistance grant of up to €2 million (A$3.2 million) to fund independent technical, environmental and social, and market studies, advancing the expansion case to BFS level
The existing offtake arrangements cover the majority of Epanko production under the 73,000tpa Updated BFS case once nameplate capacity is reached. The incremental production from the potential throughput uplift remains to be placed with offtake partners.
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What’s next for EcoGraf and the Epanko project
The immediate priority is advancing the Value Engineering expansion case to BFS level, assisted by the EIB Technical Assistance grant funding that has already commenced. This work is being undertaken alongside the debt financing process, which is targeting up to US$105 million in senior debt, as well as ongoing strategic equity and offtake discussions.
The US$105 million debt financing process is advancing in parallel with the value engineering work, with the Updated BFS financial metrics continuing to serve as the basis for lender engagement rather than the higher-throughput scenario.
The Final Investment Decision (FID) is the trigger for EcoGraf to finalise the potential 20% production increase option. It is important to note that EcoGraf has not yet quantified, and this announcement does not disclose, any updated NPV or IRR for the Value Engineering case. The 73,000tpa Updated BFS financial metrics remain the basis for the current financing process.
EcoGraf’s long-term strategic ambition spans the full battery anode supply chain: natural flake graphite production at Epanko in Tanzania, mechanical shaping into spherical graphite, and HFfree® purification into high-performance battery anode material for electric vehicle and battery manufacturers globally.
Ready to Learn More About the Epanko Graphite Project’s 20% Production Upside?
EcoGraf’s Value Engineering Review has identified a potential lift in Stage 1 nameplate capacity from 73,000tpa to 87,600tpa, with C1 costs falling 5.8% and the incremental capex sitting comfortably within the existing BFS contingency allowance — a compelling combination for investors watching the graphite supply chain.
To explore EcoGraf’s full project pipeline, downstream HFfree® strategy, and debt financing progress, visit the EcoGraf company profile on Discovery Alert for the latest updates and investment intelligence.