Sarytogan Graphite (ASX: SGA) says it is a step closer to development at its high-grade, 229 million-tonne project in Kazakhstan after being told by the nation’s government that it will be granted a mining licence, subject to environmental approval.
The Republic of Kazakhstan’s Ministry of Industry and Construction has indicated to the company that the mining licence application is on track to be granted within the next year.
Management has already made notable progress in its environmental permitting process after submitting a draft environmental impact assessment (EIA) for review. It also conducted a public hearing last week in the Kazakhstan village of Akshi, 12km north of Sarytogan’s ground, as part of a critical environmental approvals process that is expected to continue through the next year.
The latest milestone follows the company’s submission and approval in September last year for a decommissioning and remediation plan, in addition to the successful negotiation of a land access agreement with local farm and landowners in April. Management described the government’s indication that the mining licence would be granted as a “highly-significant” milestone.
“It is the culmination of a diligent process followed by the Company’s local team that is continuing with the Environmental Permit process. It provides a clear development pathway for the Sarytogan Graphite Project to complement the PFS.” Sarytogan Graphite managing director Sean Gregory
Gregory said the PFS (prefeasibility study) was on track to be delivered by September 30. It will consider a 50,000-tonne per annum development at the Sarytogan graphite project.
In less than two years, Sarytogan has delivered its high-grade mineral resource of 229 million tonnes at an exceptional 28.9 per cent total graphitic carbon (TGC).
In the graphite industry, a TGC of 10 per cent is considered impressive, making the company’s 28.9 per cent reading quite remarkable. Drilling results from early last year confirmed the near-surface nature of the deposit, with assays showing 26.8m grading 30.4 per cent TGC from one hole from the surface and ending in mineralisation.
Additional results include a 47.6m intercept at 31.3 per cent TGC from the surface including 13.9m at 40.2 per cent and a 6.8m hit grading 37 per cent in the same hole.
With the demand for electric vehicles (EVs) and associated lithium batteries continuing to rise, Sarytogan is likely to be in the crosshairs of offtake providers as 15 times more graphite is used in batteries than lithium.
The two key parts of a lithium battery are the anode, which is connected to the positive terminal, and the cathode, connected to the negative terminal. The cathode is loaded with green metals such as lithium, nickel, manganese and cobalt, which has resulted in tremendous financial interest as explorers, miners and battery-makers have fervently pursued them.
Importantly though, graphite is the primary metal of consequence in the anode. Although it has not enjoyed the high profile of lithium and nickel, graphite is crucial for lithium batteries.
While the lithium price has cooled and the fervour around battery metals has subsided temporarily, many believe the EV and lithium battery industry is merely in an intermission. And graphite is expected to play a critical role in the next phase of the industry as without it, there is no traditional lithium battery.
Sarytogan’s concerted efforts reflect a strategic approach to securing its necessary approvals and moving forward with its large-scale graphite project in a bid to position the company for continued progress in the coming months.
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