EcoGraf Secures Dual-Pronged Backing for Epanko as Mitsubishi and KfW Step Up

EcoGraf progresses Epanko graphite mine toward construction with Mitsubishi Chemical offtake MoU, US$105M KfW credit facility, and additional German development bank support.

EcoGraf is increasingly looking like a project builder rather than a pure explorer, with two powerful engines now firing in parallel. A potential offtake agreement with Japan’s Mitsubishi Chemical and a German development bank-led credit facility are pushing the Epanko graphite project in Tanzania toward a construction decision. Shares on the Australian bourse jumped 11.5% to A$0.328 on Monday, valuing the company at A$170.7 million. In Frankfurt, the stock closed at €0.21 on Friday.

The most tangible near-term catalyst is the memorandum of understanding with Mitsubishi Chemical. The Japanese giant is evaluating a binding agreement to take 10,000 tonnes of purified spherical graphite annually from Epanko. That qualification process is now underway, and investors will watch for progress in the coming weeks — a successful technical sign-off would pave the way for a firm offtake contract. EcoGraf is also partnering with Taiwan’s Long Time Technology to co-develop graphite purification plants, a move that opens doors to battery manufacturers such as Foxconn.

Financing the mine itself revolves around German development finance. KfW IPEX-Bank has already been mandated to arrange a senior secured credit facility of up to US$105 million under Germany’s UFK program — unsecured loans backed by government guarantees. That would be the cornerstone of Epanko’s capital stack. But EcoGraf is now exploring additional instruments within the KfW group. It has applied for co-financing from DEG Impulse, a subsidiary of DEG, to support resettlement, education, healthcare and local economic development around the first phase of the project. A formal application under the develoPPP grant scheme is in its final preparation, with a target start date of 1 July 2026, subject to approval.

The European Investment Bank is also providing technical assistance to Epanko, underscoring the project’s strategic importance for sustainable supply chains.

Epanko’s scale is not small. The updated bankable feasibility study estimates construction and erection costs at US$181.2 million, with an additional US$18.1 million set aside for a resettlement action plan. First-phase production is designed to deliver 73,000 tonnes of graphite concentrate per year. The company ended March with A$6.2 million in cash — a modest sum that makes the upcoming financing milestones all the more critical.

Regulatory and social groundwork continues. EcoGraf has submitted an updated environmental and social management plan to Tanzania’s National Environmental Management Council (NEMC). A site inspection is expected in the current quarter before the permit can be granted. The local corporate social responsibility plan has been approved by the Ulanga District Council and submitted to the Mining Commission; it includes health insurance for elderly residents and contributions to primary school classrooms. A delegation from GIZ, the German development agency, conducted a technical, environmental and social audit and gave positive feedback.

The stock has had a mixed year. While it has gained 27.44% over the past twelve months, it still sits 45.57% below its 52-week high and lost almost 13% in the last month alone. Those moves reflect the binary nature of a development-stage company — the next leg higher will depend on a clean sequence of permit approvals, loan structuring from KfW, and a binding offtake contract from Mitsubishi.

EcoGraf also retains a gold portfolio in Tanzania encompassing more than 3,000 square kilometres of exploration ground. Management has already identified 21 priority drill targets there, offering a potential second revenue stream that could complement the graphite business over the longer term.