Total Graphite (LSE:TGR), the flake graphite developer supplying the critical mineral for the energy transition, has appointed Lycopodium Minerals Africa (Pty) to review and update feasibility work on its Montepuez Graphite Project in Mozambique.
The project is permitted for production of up to 100,000 tonnes per annum of graphite concentrate.
Lycopodium will take the modular, two-stage development route set out in the October 2017 Value Engineering Study as the base case, rather than the single-stage configuration in the February 2017 definitive feasibility study.
That 2017 study had contemplated a single 100,000 tonne-per-annum operation requiring $126 million of pre-production capital, with a net present value of $146 million and payback of 4.75 years.
The Value Engineering Study instead proposed splitting development into two roughly 50,000 tonne modules: a first stage costing $42.3 million with payback under two years, followed by a second stage adding similar capacity for just $27 million of incremental capital, taking total capex to roughly $69 million.
Roughly 60% of detailed design engineering was historically completed, alongside early site works including a 100-person base camp and mobile crusher.
Montepuez holds mineral resources of 110.5 million tonnes at 8.2% total graphitic carbon, containing 9.1 million tonnes of graphite.
"This appointment is therefore not simply an update of an historical feasibility study. It marks the beginning of the next phase in bringing Montepuez back towards development", said chairman Christian Dennis.
Initial results from Lycopodium's review are targeted for November, ahead of a second phase intended to support project finance and a targeted restart of construction in 2027.
News Intelligence what this means for the company
Total Graphite has engaged Lycopodium to refresh the feasibility study for Montepuez, its permitted 100,000 tpa graphite project in Mozambique, with initial results due in November. The refresh will adopt a two-stage modular development path (splitting the project into two ~50,000 tonne phases) rather than the single-stage 100,000 tonne configuration from the 2017 definitive feasibility study, reducing total capex from $126 million to roughly $69 million and accelerating first-stage payback to under two years. This marks a material shift in project architecture ahead of a targeted 2027 construction restart, though the company is still 12+ months from a final investment decision.
The modular approach materially improves project economics—halving first-stage capex to $42.3 million and cutting payback to under two years—but Montepuez remains in pre-development phase with feasibility work still underway. The November results will be the first test of whether the revised scope can support financing and a 2027 restart; execution risk on both fronts remains high.
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