Richland Resources has commenced a feasibility study to evaluate restarting production at the Merelani Graphite Mine located within the company’s existing Block C licence area, where it has mined tanzanite since 2004.
It said in a statement that the feasibility study would assess the graphite value in these tanzanite tailings as well as the viability of re-developing open-pit graphite operations.
“Located within our existing licence area, 1 km from current tanzanite mining operations, there are several potential partnerships available to develop both a tailings reclamation operation and restart the open pit graphite mining operation,” said Richland Resources chief executive Bernard Olivier.
"Graphite is a specialist market and we have initiated a feasibility study, following on from discussions with parties interested in securing a long-term source of material. Our intention is to build shareholder value from a profitable production portfolio with minimal costs.”
Richland also said that the re-opening of its graphite mine was meant to take advantage of the recent surge in the price.
Graphite was currently fetching over $2,500 from between $480-$550 per tonne when the Merelani graphite mine was closed.
Historically, the licence area hosted the producing Merelani Graphite Mine until closure of the operations in 1998.
Sufficient reserves were initially identified for a 40-year operation at a mining rate of 15,000 tonnes per annum of high-grade flake graphite of 97-98 percent purity.
The mine, however, ran into financial problems in 1997, and the last shipment of remaining stockpiled ore was made in February 1998.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
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