US-based Symbion Power has been selected to provide power solutions for Magnis Resources' Nachu graphite project in Tanzania.
Symbion will develop and operate a 30MW gas-fired power station, associated substations, and a 132kV transmission line to connect Nachu project to the main grid.
Magnis Resources chairman Frank Poullas said: "Magnis has closely studied a variety of power supply options for Nachu and we believe this agreement represents the most attractive and viable pathway to provide a stable power supply for Nachu.
"Symbion is a firm with vast experience around the world and especially in the Tanzanian power sector."
Symbion and Magnis have secured approval from the Tanzania Electric Supply Company (TANESCO) to go ahead with the development.
Magnis plans to conduct detailed work and then later complete an environmental impact assessment for the power project.
After demonstrating the technical and environmental feasibility of the project, Symbion will fund, develop and build the electricity infrastructure for Nachu.
Symbion Power CEO Paul Hinks said: "The Nachu project is unique in terms of its geological qualities and we are pleased to be working with Magnis on this world-class endeavour."
In March 2013, Magnis announced an extensive graphite discovery on its 100%-owned Nachu tenement prompting an immediate exploration work on the tenement.
The Nachu area covers 199km² and is situated west of the coastal city of Lindi, 200km by road from the port city of Mtwara.
Image: (Left to right) Symbion Power VP business development Peter Gathercole, Symbion Power CEO Paul Hinks, Magnis Resources director Peter Tsegas, Magnis Resources chief operations officer Rod Chittenden, Symbion Power project manager Han Van der Vlugt, Magnis Resources exploration manager Brent Laws. Photo: courtesy of Magnis Resources Limited.