The contract is estimated to be worth $150m.
China Railway 24th Bureau Group overseas business department general manager Wei Wang said: "With our vast experience in Tanzania and other Africa area, we look forward to working with Magnis Resources to construct the world’s most sign ificant and profitable graphite mining operation."
China Railway 24th Bureau Group is a wholly-owned subsidiary of China Railway Construction (CRCC), which handled construction of various mining plants in Africa.
Magnis announced graphite discovery on its Nachu tenement in March 2013, and conducted rock chip sampling, trenching, electromagnetic survey and RC and diamond core drilling.
Analysis of the samples indicated large flake graphite and no deleterious elements were identified during multi-element analyses.
