Inside Mining Focus In Africa Handbook July 2020

Page 12

PROJECTS

Pula’s Tanzania graphite project grains traction

L-R: PGP geological team on-site at the Ruangwa: Efraim Hermann, Yusuph Karim and Pula VP Dr Mary Stith

Tanzania hosts world-class graphite deposits and The Pula Group aims to take the lead and social responsibility as project developers. By Nicolaas Steenkamp

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he Pula Group is in the process of developing four tenements in Tanzania, hosting jumbo graphite flake deposits. The exceptional quality of the graphite is expected to make the project attractive despite the current oversupply and lower demand. With a world-class graphite project in Tanzania, East Africa, US-based The Pula Group is committed to a green future. Graphite is critical to reducing emissions through e-vehicles and other green technology. Graphite is also used to produce graphene, the thinnest, strongest and lightest identified material, which is driving innovation in the health and aerospace sectors. Along with the high calibre of its Tanzanian graphite opportunity, The Pula Group is setting high ethical standards in the mining sector. The Group’s subsidiary for developing the project is Pula Graphite Partners (PGP), a 50-50 joint venture with local strategic partners. Even during the exploration phase, PGP already has a superior track record of philanthropy, which includes outfitting a youth soccer team, providing emergency food relief for flood victims, and supplying PPE for the health sector in the coastal Ruangwa District, where the four graphite tenements are located. The high-quality graphite mineralisation includes jumbo flakes developed to a depth of 60 m, a key driver ensuring the project economics are strong. PGP is taking a modular approach to mining and processing graphite – an innovative and efficient approach to optimise the success of the project

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during the ramp-up phase. The phased plan commences with a mini-plant processing facility that produces 15 000 tonnes of concentrate in the first year. Using the ‘Mine-in-the-box’ concept developed by South African mining consulting group Bowline Professional Services, the mine can be scaled up with ease to the full capacity of 80 000 tonnes per year. This adaptive approach to mining helps mitigate economic risks and the ‘too big to fail’ attitude that has sunk many large-scale mining projects. The PGP model provides a clear way to reignite the capacity for junior mining companies to activate the sector with minimal risk and maximum benefit to communities. In addition to the quality of the graphite, business model and corporate ethic, the project logistics also aid in distinguishing PGP. The site is located 220 km from the deep-water port of Mtwara, enabling the concentrate to be transported reliably to meet delivery dates. Reliable power and water are a challenge to remote projects, but PGP has been able to identify innovative solutions. As a long-term sustainable development solution, Pula plans to execute a grid power agreement to deliver a third-party, build-own-operate solution. Water will be extracted from a seasonal river and wells, and stored in environmentally friendly containers. PGP’s motto – ‘doing well, while doing good’ – reflects a deep corporate commitment to mining as a positive engine of change in Africa, and the project builds and enhances infrastructure for local development.

Project history After careful consideration and studies of high-potential mining investments, The Pula Group identified the graphite deposits in Tanzania as having the highest potential. PGP’s licences are located in an area known to be highly prospective for graphite in the south-east quadrant of Tanzania. The country has a stable, democratic regime and is endowed with abundant natural resources. In order to further stabilise the mining sector, the Tanzanian government has developed and implemented a fully comprehensive package of mining legislation, which emphasises local beneficiation and industrialisation. Key regulations include the 2010 Mining Act and Regulations, the Tanzania Extractive Industries Transparency Accountability Act 2015, the Finance Act of 2017, and the Mining Commission Guideline for Submission of Local Content Plan 2018. Tanzania’s deposits are considered among the best in the world and the country is poised to be a global leader in graphite production. This has been confirmed and promoted as part of Pula’s investment and exploration programme,


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