🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

International Graphite secures funding for construction start on graphite micronising facility at Collie

Published 12/11/2024, 03:35 pm
Updated 12/11/2024, 04:00 pm
© Reuters.  International Graphite secures funding for construction start on graphite micronising facility at Collie

International Graphite Ltd (ASX:IG6) is preparing to begin construction at the Collie Micronising Facility in Western Australia after entering into a funding agreement with the WA Department of Jobs, Tourism, Science and Innovation (JTSI) for $4.5 million.

The agreement, made on behalf of the State Government of Western Australia, will be drawn down over the project construction period as milestones are achieved.

IG6 expects to use about $2 million of the grant for the first stage of construction, building a 3,000-tonne-per-year micronising facility at a total estimated capital cost of about $4 million – Stage 1 is already fully funded to mechanical completion.

The remaining $2.5 million will be applied to the second stage of facility expansion, which is set to double production capacity to about 10,000 tonnes per year.

Mine-to-market strategy

“We are excited to be pushing ahead with the construction of the new plant at Collie,” International Graphite managing director and CEO Andrew Worland said.

“Establishing a micronising business in Collie has been an important step in our development plans.

“Critically, it will establish the company as a producer in the graphite industry and build further our technical skills as we progress our Springdale mine to market battery anode material strategy.”

IG6 intends to feed its graphite micronising facility with graphite from its flagship Springdale Graphite Project, the second-largest graphite deposit in Australia.

The company recently secured a second mining licence over the project, unlocking the potential of both main deposits and its 3.2-million-tonne graphite resource.

Read more: International Graphite exceeds battery-grade specifications in graphite concentrate purification tests

International Graphite is targeting graphite products of 95% total graphitic content (TGC) and 99% TGC micronised products from graphite concentrates produced at Springdale.

“At those production levels, our Collie facility will be amongst the most significant global producers of micronised graphite outside of China,” Worland explained.

Next (LON:NXT) steps toward construction

From here, IG6 will advance a front-end engineering and design (FEED) study which will confirm the implementation schedule and forecast economics of stage 1 construction, expected to be complete within the coming months.

The company has identified several critical path items to advance, including:

  • Local building approvals
  • Construction of new buildings
  • Connection to utilities and services including electricity grid

International Graphite is confident it can successfully bring its two-staged construction strategy to fruition, having gained operating experience from the Collie Graphite Processing & R&D Facility, which includes pilot scale micronising and spheroidising equipment and a qualification scale micronising plant.

“The facility has been instrumental in optimising equipment selection, vendor assessment, operating conditions and scaling of Stage 1 production capacity to achieve lower unit capital costs than was envisaged in the original 2023 feasibility study,” the company stated.

Read more: International Graphite to capitalise on US demand for Australian graphite

Read more on Proactive Investors AU

Disclaimer

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.