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Faru Graphite Corporation is committed to minimising its environmental impact through sustainable practices, with a focus on energy efficiency, emissions reduction and preserving biodiversity as it advances the Mahenge Graphite Project.

Energy and Emissions

Understanding the Company’s carbon footprint is important to recognise and manage the impacts they can have on climate change. The Company conducted a Greenhouse Gas (GHG) assessment to quantify the estimated potential GHG emissions for the Mahenge Graphite Project, Idenke Settlement Area and Transmission Line during the construction and operation stages. The assessment of Scope 1 and 2 emissions includes emissions from vegetation clearing, the use of construction machinery and equipment, the use of diesel generators for miscellaneous purpose during the construction phase, electricity consumption from the TANESCO grid and the use of backup diesel generators during the operational phase. The estimated GHG emissions are summarised below:

PROJECT

PROJECT PHASE

EMISSION SCOPE

EMISSIONS PER YEAR
(KtCOe / YEAR)

TOTAL EMISSIONS
(KtCOe)

Mahenge Graphite Project

Construction phase

Scope 1

90

149

Scope 2

0

0

Operation phase

Scope 1

25

661

Scope 2

119

3,099

Idenke Settlement Area

Construction phase

Scope 1

13

39

Scope 2

0

0

Operation phase

Scope 1

3.9

n/a8

Scope 2

0.06

n/a8

Transmission Line

Construction phase

Scope 1

9.9

14

Scope 2

0

0

Operation phase

Scope 1

8.3

249

Scope 2

76

2,290

Power for the operations will be provided by a grid power connection supplied to the Mahenge Graphite Project via a new 220kV transmission line from Ifakara.

In 2023, 63% of the grid installed generating capacity was produced with natural gas, 32% was hydropower and 4% was produced with fuel. The Julius Nyerere Hydropower Project (JNHPP) plays a critical role in the Company’s potential utilisation of renewable and reliable energy. The first JNHPP turbine was turned on in February 2024 and now, following the full commissioning of all nine turbines in April 2025, the country’s energy capacity has seen a significant boost, with hydropower now accounting for 67.4% of domestic generation, JNHPP adding 2,115 Megawatts (MW) to the grid.

Although the ESIA study mentions that the hydropower facilities may experience national-level power cuts or load shedding during extended drought periods, it also indicates that the Mahenge Graphite Project is situated within the Kilombero Catchment. This catchment covers an area of 40,240 km² up to the confluence of the Kilombero and Rufiji Rivers and contains the largest freshwater wetland in East Africa with abundant rainfall. Therefore, the Mahenge Graphite Project is subject to low to medium drought risk.

Faru Graphite Corporation has completed a Physical Climate Change Risk Assessment for the construction and operation phases for the Mahenge Graphite Project

Julius Nyerere Hydropower Project