(Ecofin Agency) - ASX-listed Magnis Resources signed with American firm Symbion Power, a power development agreement for its Nachu graphite project. Under the agreement, Symbion will develop and exploit a 30 MW gas-fired station, connected to a sub-station and a 132KV transmission line to connect the project to the main power grid.

“Magnis has closely studied a variety of power supply options for Nachu and we believe this agreement represents the most attractive and viable pathway to provide a stable power supply for Nachu,” said Magnis chairperson Frank Poullas.

The firm has also revealed that is was currently carrying out a number of detailed works and was about to complete the evaluation of the project’s environmental impact. Once technical, financial and environmental feasibility of the project is demonstrated, Symbion will fund, build and develop the infrastructure.

Magnis Resources Ltd owns 100% of the Nachu project, located in the South Eastern part of Tanzania. The firm plans to start, in Q1 2017, commercial production of graphite with 94.4% grade of graphitic carbon, obtained via floatation or 99.4% grade, via leaching by caustic soda.

Louis-Nino Kansoun