• Volt Resources partners with UOF to advance Bunyu graphite project in Tanzania
  
  
• UOF to invest $11.1M for 62% stake, update feasibility and lead development
  
  
• Move follows weak graphite prices; demand projected to more than double by 2040
  

Australian miner Volt Resources said on Wednesday, Dec. 10, that it has entered into a binding letter of intent with investment firm Unbounded Opportunities Fund SPC (UOF) to advance the Bunyu graphite project in Tanzania, despite continued weakness in graphite prices.

Global graphite prices fell about 20% in 2024 amid oversupply and softer demand, according to the International Energy Agency (IEA). ChemAnalyst data show U.S. graphite prices dropped a further 2.7% in the third quarter. Against this backdrop, UOF plans to take a 62% stake in Bunyu through an equity investment of $11.1 million, leaving Volt with 38%.

Under the proposed arrangement, UOF will prepare an updated feasibility study for Bunyu and oversee mining-contract negotiations, construction and operations planning. Volt, which previously held full control of the project, will focus on securing financing. Final terms are still under negotiation.

“This is a significant milestone for Volt to find a substantial partner to provide equity funding combined with project cost and management support to facilitate the development of the Bunyu graphite project,” Executive Chairman Asimwe Kabunga said. “To overcome the funding issues arising from relatively low graphite prices, UOF is confident it can deliver increased annual concentrate production rates with efficient capital cost expenditure and lower unit operating costs when compared with the 2023 feasibility study.”

UOF’s investment comes amid expectations of rising global graphite demand driven by the energy transition. The IEA forecasts demand to more than double to above 10 million tonnes by 2040, from 4.7 million tonnes in 2024, a trend that could eventually help lift prices.

The new feasibility study is expected to outline a mine producing 40,000 tonnes of concentrate annually, with estimated capital costs of $37 million. No timeline has been set for completing the partnership agreement.

Bunyu is one of several graphite developments underway in Tanzania, alongside larger projects such as Nachu (Magnis Energy), Mahenge (Black Rock Mining) and Epanko (EcoGraf).

Aurel Sèdjro Houenou