Graphite developer Triton Minerals has appointed MCC International Incorporation as the engineering, procurement and construction (EPC) service provider for the Ancuabe graphite project, in Mozambique.
The two companies signed a letter of intent, that will allow them to accelerate the execution of a formal EPC contract, which was expected in the third quarter of this year.
The EPC contract will be on a fixed price basis, Triton told shareholders, providing certainty on the capital costs and construction schedule for the mineral processing facility and other infrastructure at Ancuabe.
Detailed design and the placement of long-lead items is expected to start in the fourth quarter.
The Triton board at the start of June approved the $99.4-million development of Ancuabe, which is expected to produce some 60 000 t/y of graphite concentrate to generate yearly revenues of $82.6-million and earnings before interest, taxes, depreciation and amortisation margins averaging 53% over a 27-year evaluation period.
Triton said that following the tender evaluation process for the EPC contract, the preproduction capital expectations for Ancuabe would be between 20% and 25% lower than expected, which will materially enhance the project’s economics and assist in financing discussions.
Meanwhile, the appointment of MCC allowed Triton to accelerate financing discussions with a major Chinese bank, which provided indicative terms for an EPC-linked loan facility concessional interest rates.source: miningweekly.com