Ryzon Materials and China’s Yintai Xinhai Mining have signed a
non-binding heads of agreement (HoA) covering an engineering,
procurement, construction and management (EPC+M) contract for the
Nachu graphite project in southern Tanzania.

Through its subsidiary Uranex Tanzania, Ryzon holds 100%
ownership of the Nachu project, located near Ruangwa, about 220km
from the port of Mtwara.

The project is designed to produce up to 80,000tpa of graphite
concentrate. Ryzon has previously reported that Nachu hosts a
JORC-compliant graphite resource, although the company has not yet
disclosed updated reserve estimates or final mine-life
projections.

Under the HoA, Xinhai will deliver revised capital cost
estimates for the project’s first development stage during the
current quarter and complete detailed engineering, following an
earlier technical update released on September30,2025.

Ryzon chairman Frank Poullas said the agreement marks progress
toward construction. “We appreciate the support we continue to
receive from Xinhai and its partners,” Poullas said. “We look
forward to moving towards major development works in the coming
year.”

The HoA sets out a pathway to a binding EPC+M contract, with
Xinhai scheduled to submit a formal proposal in Q2 2026, covering
plant design, construction scope and delivery timelines.

Xinhai is also supporting project financing, with discussions
under way with several potential lenders and strategic partners,
primarily in China. The parties are targeting at least 80% of total
project funding through debt, although the total capital
requirement has not yet been disclosed.

Xinhai chairman Elon Zhang said the company had completed
extensive technical work on the asset. “With the numerous site
visits our company has conducted at Nachu and all the test work
completed in our lab, I have no doubt that Nachu is a unique
graphite mine,” Zhang said. “We will push to bring the project into
production in the shortest possible timeframe.”

Ryzon has not yet provided an updated timetable for final
permitting, including environmental approvals and a mining licence,
which will be required before construction can begin.

Tanzania has become a growing hub for graphite development, as
demand rises for battery minerals used in electric vehicles and
energy storage. 

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