The Conversation (0)
Magnis Resources (ASX:MNS) provided an update on its Nachu Graphite Project in Tanzania. The Environment and Social Impact Assessment study is underway and is set for completion in June 2015. A Resettlement Action Plan is also currently in the works, with an asset survey of the project area conducted in January. A Bankable Feasibility Study is also underway and is expected to be completed in August 2015.
Magnis released its Pre-Feasibility Study in December 2014, with the following highlights:
- NPV of US$1.04B with 84% IRR
- Capital payback of 1.4 years with low sensitivity to capital costs
- Cash margin of over US$ 1,600 per tonne of product
- Capital cost estimate of US$171.4 million
- Operating cost estimate of US$448 per tonne for the first 3 years
As quoted in the press release:
Environment and Social Impact Assessment (ESIA) and Permitting
The Environment and Social Impact Assessment (ESIA) study is currently being prepared by local and international mining environmental experts MTL Consultants of Tanzania and Digby Wells Environmental of South Africa. The environment study commenced in October 2014 and is on track for completion in June 2015 after finalising wet season monitoring.
As part of the permitting process, a Resettlement Action Plan (RAP) is being developed. An asset survey of the project area was conducted in January and this identified all households and farms that will need resettlement. The survey identified that approximately 30 households need to be relocated. A Resettlement Working Group has been formed with representation from regional and district governments as well as representatives from all the stakeholder communities.
The ESIA and the RAP are being conducted to International Standards (IFC and Equator principles). Extensive discussions have been held with all domestic stakeholders on both the ESIA and RAP activities and programs. After the completion of both ESIA and RAP, a mining lease application will then be submitted.
… Government and Community
Community engagement has been a priority for Magnis from the commencement of exploration at Nachu. Meetings have been held regularly with all stakeholders to explain the company’s activities at each stage of the project.
Our Community Liaison Manager Leah Mwafenga has developed good lines of communication with all stakeholders and our transparency with the community has resulted in a mutually respectful relationship between company and community.… Bankable Feasibility Study (BFS)
Following the completion of a successful Pre-Feasibility Study (PFS), a Bankable Feasibility Study (BFS) has commenced and is led by LogiMan Pty Ltd of South Africa. The study is expected to be completed in August 2015.
Click here to read the Magnis Resources (ASX:MNS) press release
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