Triton’s contractor appointment could deliver lower costs for Ancuabe graphite mine
Special report: Triton Minerals has not only taken another critical step towards the construction of its graphite mine in Mozambique, but the appointment of its engineering, procurement and construction (EPC) contractor could deliver cost savings.
Triton (ASX:TON) has inked a letter of intent with one of the world’s largest engineering and construction companies, China’s MCC International, to build the processing facility and other infrastructure at its flagship Ancuabe project.
“Executing this leter completes the EPC tender process and is a critical step forward for the development of the Ancuabe Graphite Project,” managing director Peter Canterbury said.
“Current estimates of capital costs developed through the tender process indicate potential for significant reductions in the required capital expenditure, which would enhance the already strong project economics for Ancuabe.”
The letter allows Triton and MCC to accelerate execution of the formal EPC contract, which is expected to be completed in the third quarter.
The contract will be on a fixed price basis, providing certainty in relation to capital costs and construction schedule.
Signing the EPC Contract in the third quarter will allow detailed design and the placement of orders for long lead capital items to begin in the final quarter of the year.
Triton recently secured a provisional environmental licence that allows the company to fast track the Ancuabe mine.
The Mozambique government granted the provisional environmental licence within six months of Triton submitting its application.
The grant of the provisional environmental licence is the precursor for the receipt of the final environmental licence that will complete the environmental approvals process.
It is also a key step in de-risking the Ancuabe project, particularly as it provides greater certainty to potential financiers and opens the door for debt funding deals.
Triton has already locked in supply deals for half of the annual graphite concentrate that is expected to be produced from the mine.
The company has signed binding off-take sales deals with major Chinese graphite producers Qingdao Chenyang Graphite and Qingdao Tianshengda Graphite.
This special report is brought to you by Triton Minerals.
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