Magnis Resources Announce Key Power Infrastructure Agreement Signed For Nachu Graphite Project

Magnis Resources (ASX:MNS) announced that it has entered into a power development agreement for the Nachu Graphite Project in Tanzania with leading US-based power engineering and construction group Symbion Power LLC.
As quoted in the press release:

Under the terms of the Agreement, Symbion will provide a total power solution for Nachu by developing and operating a dedicated 30MW gas fired power station, associated substations and a 132KV transmission line to connect Nachu to the main power grid.
The Tanzania Electric Supply Company (TANESCO) has given its in principal approval for Symbion & Magnis to proceed with the development..
Magnis will now undertake further detailed work and complete an Environmental Impact Assessment for the power project. Upon demonstrating the technical, economic and environmental feasibility of the power project, thereafter Symbion will be responsible for funding, developing and building the electricity infrastructure and the Nachu Project will be the offtaker of the power.
Symbion has extensive experience operating power plants and constructing transmission lines in Tanzania and elsewhere in the world , including a 50MW diesel plant at Arusha, a 55MW diesel plant at Dodoma and a 120MW gas turbine plant in Dar es Salaam.
The Nachu Bankable Feasibility Study (BFS) estimates for capital and operating costs relating to power were constructed on the basis of such a third party build-own-operate grid power supply solution. Study work completed by an Australian Electrical Engineering Consultant provided an indicative power price of between US$0.08 to US$0.10 per kwh for on-grid power. This represents a significant saving compared to other power options such as diesel or heavy fuel oil power generation.

Magnis Resources Chairman, Frank Poullas, stated:

Magnis has closely studied a variety of power supply options for Nachu and we believe this Agreement represents the most attractive and viable pathway to provide a stable power supply for Nachu.
Symbion is a firm with vast experience around the world and especially in the Tanzanian power sector. I would like to thank Symbion CEO Paul Hinks and his team for their efforts so far and on behalf of Magnis we look forward to working closely with Symbion to deliver the power project.

Connect with Magnis Resources (ASX:MNS) to receive an Investor Presentation.