Key Minerals of the African Continent: Australian Company Ryzon Materials Seeks Chinese Partners to Fund the Tanzanian Graphite Project
¬ Ryzon Materials is seeking debt financing to meet at least 80% of Natchu's capital requirements
¬ The project plans to produce 236,000 tons of graphite annually over a 10-year mining period
¬ China's oversupply and weak graphite prices are affecting the financing outlook
Ryzon Materials is actively raising funds to advance the development of its Natchu graphite project in Tanzania. The Australian mining giant stated in a statement released on Friday, January 9, that it is currently in discussions with several Chinese partners, planning to secure funding for at least 80% of the project's financial needs through debt financing.
The latest feasibility study published in 2022 indicated that the Natchu mine could produce 236,000 tons of graphite annually over a 10-year mining period. The study estimated initial capital expenditures of $364 million. Ryzon has been continuously raising this funding for years, advancing through collaborations with multiple companies. In 2025, the company officially hired the U.S. Global Corporate Finance (GCF) to support its financing project.
Although Ryzon has not yet disclosed specific information about the Chinese companies involved, the latest developments stem from its cooperation agreement with Yintai Xinhai Mining. According to the agreement, both parties will collaborate with a Chinese industrial group, which may ultimately be responsible for developing the construction plan for the Natchu project.
Funding support is also part of the agreement, and Xinhai Mining is assisting Ryzon in finding sources of funding through its resource network.
¬ Signed an agreement with Xinhai Company to reach a consensus on engineering procurement, construction, and management matters for the Natchu graphite mine
This move by the company comes as global demand for graphite surges, driven mainly by the expansion of the electric vehicle industry. The International Energy Agency predicts that graphite consumption will exceed 10 million tons by 2040, more than doubling from 2024 levels. However, in the short term, Ryzon and its potential investors still face the challenge of a weak market, with China's oversupply of graphite being the main constraint.
Data from the International Energy Agency shows that this situation led to a 20% drop in graphite prices in 2024 and dragged down other graphite projects in Tanzania. The Epanko project developed by EcoGraf and the Mahenge project operated by Black Rock Mining are both seeking financing before making final investment decisions.
Source: ecofinagency
Original: toutiao.com/article/1854121149616455/
Statement: This article represents the views of the author himself.