International Graphite says its latest scoping study has highlighted the “outstanding” economics of developing the company’s proposed graphite battery anode material facility at Collie, in Western Australia’s South West region.
The company’s new report shows the estimated total capital cost to produce uncoated spheroidised purified graphite (USPG) is about $US87 million (AU$131.5 million), as opposed to the cost of producing coated spheroidised purified graphite (CSPG) at an estimated $US222 million (AU$335 million).
The updated flowsheet involves graphite micronising, spheroidising and chemical purification to produce USPG, then carbon-coating to produce CSPG.
According to International Graphite’s latest scoping study, the completed facility would be capable of producing up to 40,000 tonnes per year of graphite concentrates, with 18,600 tonnes per year of CSPG and 20,000 tonnes annually of USPG.
The CSPG facilities are predicted to produce an annual average revenue of about $US172 million (AU$260 million), with an EBITDA of $US100 million (AU$151 million). Using USPG-only facilities would produce an annual average revenue of $US95 million (AU$143.6 million) and an EBITDA of $US43 million (AU$65 million).
Management says the proposed plant has been designed as two parallel lines and could be implemented in stages, including developing a USPG facility before expanding into coating.
While the latest figures are based on International Graphite purchasing graphite concentrates from a third party, the company intends to integrate its fully-owned Springdale graphite project near Hoptoun to provide the base material for the facility.
Our expert graphite metallurgists and engineers have applied their collective expertise in graphite metallurgy, process design, flowsheet development, estimation and markets, to present a compelling development pathway for the Collie Graphite BAM Facility. The economics are outstanding and there are many opportunities to improve the cost structure with further testwork. International Graphite managing director and chief executive officer Andrew Worland
Springdale boasts an inferred resource of more than 15 million tonnes with a total graphite content (TGC) of 6 per cent. Notably, the project houses an even higher grade 2.6-million-tonne inferred resource running at a grade of 17.5 per cent TGC. The project is a near-surface, potentially open-pit mining operation that is strategically located on WA’s south coast and offers a well-developed infrastructure of roads and ports.
The company plans to process its Springdale-sourced ore at its Collie processing facility, about 450 kilometres from the deposit. The procedure will allow it to transform the raw graphite material into a substance appropriate for use in the construction of lithium-ion batteries.
Once International Graphite has developed Springdale, including plans to upgrade the resource following the discovery of a fourth high-grade prospect, the company will update its scoping study to reflect the benefits of sourcing its own graphite material.
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