International Graphite Ltd (ASX:IG6) has released a new definitive feasibility study (DFS) demonstrating the technical, financial and sales potential of a planned A$12.5 million graphite micronising plant at Collie in Western Australia.
The plant, which is scheduled to be installed in mid-2024 and begin operating in the third quarter of that year, will be one of the first of its kind in Australia.
Micronisation is the first step in producing battery anode material (BAM) from graphite but micronised graphite also has its own industrial uses in polymers, adhesives, ceramics and lubricants.
This study offers attractive sales potential for Collie, indicating average operating costs of US$1,980 per tonne of micronised product, with current sales pricing exceeding US$3,000 per tonne.
The DFS itself was completed to an Association for the Advancement of Cost Engineering (AACE) Class 3 level of accuracy by BatteryLimits Pty Ltd.
Read: International Graphite lauds “outstanding” initial concentrate test results, achieving 97.4% total graphitic carbon
Early cashflow to support development
IG6 managing director and CEO Andrew Worland said a low capital expenditure graphite micronising facility would enable the company to generate early cashflow as it continued building a fully integrated battery anode material capability, with its planned mine at Springdale and downstream processing at Collie.
Read: International Graphite orders micronising qualification plant for Collie facility
“Strategically, a commercial micronising plant will help us launch into the graphite marketplace, build brand recognition and develop operational skills in the milling phases of the future BAM production line,” Worland said.
“Micronised graphite is the critical first stage in the production of BAM and also a by-product from the graphite spheroidising process – building a market for it will significantly enhance our future BAM operations.
“There is also widespread demand for micronised graphite, as a cathode additive for lithium-ion batteries and in industrial markets for its application in lubricants, engineered products, polymers and plastics.”
Strong government support
IG6 has already received a grant for A$2 million in funding from the Western Australian State Government’s Collie Futures Industry Development Fund.
Read: International Graphite has Collie graphite pilot processing plant ribbon cut by WA Premier and Minister
This latest DFS significantly expands on the production rates that grant was based on, offering a nominal 4,000 tonnes per annum micronised graphite production capacity.
The WA Government’s South West Development Commission CEO Mellisa Teede and International Graphite chair Phil Hearse inspect IG6’s Collie BAM R&D facilities.
“Establishing a commercial operation is the next step in building a new and significant international business in Collie that will play a critical role in battery supply for global decarbonisation,” Worland continued.
“We are extremely pleased with the leadership and support the Western Australian Government is providing to help transition the Collie economy and assist new businesses, like ours, to establish there.”
IG6 intends to make the final investment decision (FID) for the Collie micronising facility during product qualification operations.
The company is exploring several non-dilutionary forms of capital to finance construction of the facility.
Read: International Graphite fields yet another set of strong graphite assays from flagship Springdale Project
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