Evolution Energy up 6% as FEED at Tanzanian graphite play launches

Evolution Energy Minerals (ASX:EV1) has awarded international firm CPC Engineering the FEED contract for its flagship Tanzanian Chilalo graphite project. 

CPC Engineering boasts experience in getting graphite processing infrastructure off the ground, including Syrah Resources’ (ASX:SYR) Mozambique Balama graphite project.

The completion of FEED and a Definitive Feasibility Study (DFS) will allow an updated capital cost estimate to be produced, priming the project for a Final Investment Decision (FID). 

An overview of future milestones at Chilalo (Evolution Energy Minerals)

Offtake agreement already in place 

In early-mid May, Evolution announced it had executed a binding graphite offtake agreement with China’s Yichang Xincheng Graphite Co.

For a minimum of three years, Evolution Energy Minerals will supply YXGC with 30,000tpa of coarse flake graphite, equalling 50% of expected Chilalo output.

YXGC is a high-impact company in the graphite space and one of the leading international companies capable of producing refined, high-value graphite products. 

Reducing costs where possible

Evolution notes it can reduce total expenditure on the project with modifications to its Tailings Storage Facility (TSF). 

The company is also working with CPC to identify decarbonisation opportunities where possible. 

Evolution Energy Minerals executive director Michale Bourguignon has worked with CPC previously. 

The company has also involved in the FEED work its representative John Clement, an individual who has worked in relevant roles for Mondalephous, Bechtel Mining, John Holland and Worley. 

Evolution Energy Minerals' three month charts up against the Materials Index (XMJ)