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International Graphite Limited (ASX:IG6) (IG or the Company) has released a DFS demonstrating the technical, financial and sales potential of building and operating a nominal 4,000tpa graphite micronising facility in Collie, Western Australia.
HIGHLIGHTS
- A new definitive feasibility study (DFS) supports plans for a A$12.5m graphite micronising plant at Collie.
- The plant will be one of the first of its kind in Australia and is expected to be operational in Q3-2024.
- Micronising is the first step in the production of battery anode material (BAM) and has its own industrial markets.
- Operating costs for micronised products average US$1,980 per tonne with current sales pricing exceeding US$3,000 per tonne.
- Early product sales will generate brand recognition, market credibility and processing experience while growing a market for future micronised fines, a by-product from production of spheroidised graphite in BAM production.
The plant, which could be installed in mid-2024 and operational in Q3 2024, would be one of the first of its kind in Australia. The DFS has been completed to an Association for the Advancement of Cost Engineering (AACE) Class 3 level of accuracy by BatteryLimits Pty Ltd.
International Graphite has already demonstrated its ability to produce micronised product at pilot scale from its existing facilities in Collie and has ordered “qualification-scale” micronising processing equipment which is due for delivery and installation at the Collie site in June. The qualification plant will be used to produce material for customer qualification and acceptance commencing in Q3 2023 and to confirm a final investment decision on the commercial scale operation.
Managing Director and CEO Andrew Worland said a low capex 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.
“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,” Mr 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.
“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.
”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.”
Picture 1: International Graphite’s R&D and pilot processing facility in Collie, Western Australia.
International Graphite has completed the DFS for a nominal 4,000tpa graphite micronising facility in Collie, Western Australia. Proposed production rates have significantly expanded compared with an initial feasibility study prepared in 2020, which was the basis for the Company’s approved $2M funding from the Western Australian State Government’s Collie Futures Industry Development Fund.
Picture 2: South West Development Commission CEO Mellisa Teede and International Graphite Chairman Phil Hearse inspect IG’s Collie BAM R&D facilities.
Key DFS findings include:
- The nominal plant capacity of 4,000tpa includes micronising mills capable of producing up to 5,000tpa of micronised product depending on the final mesh specifications of the product.
- Sales prices and operating costs vary depending on the grade of feedstock and grade and sizing of finished products. The DFS assumes products will be manufactured in various sizes and at both 95% and 99% graphite purity. The average operating cost, including the cost of importing concentrate feed to Collie, is estimated at US$1,980 per tonne for micronised product1 with the average sales prices for micronised product, based on independent market sources, currently exceeding US$3,000 per tonne. The qualification process will be used to confirm, refine and optimise the final product mix.
- The existing BAM R&D facilities at Collie will be expanded to accommodate the proposed new graphite micronising facility.
- Installed capital cost, including contingency (15%), is estimated at A$12.5M.
- Ten months from order has been allowed for equipment manufacture and installation.
- Initially, the facility will treat third party imported graphite concentrates and will be available to treat a portion of graphite concentrates from the Springdale Graphite Project, once its operations begin.
- The micronising plant will facilitate market development for micronised products including micronised by-products from the future planned Collie BAM facilities.
A final investment decision for the Collie graphite micronising facility will be made during product qualification operations. The Company is currently exploring several non-dilutionary forms of capital to finance construction of the Collie graphite micronising facility.
Click here for the full ASX Release
This article includes content from International Graphite, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
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International Graphite
Investor Insight
International Graphite’s mine-to-market strategy, leveraging its compelling graphite resource, places the company in a strategic position to become an important player in the development and expansion of Western Australia’s battery supply chain.
Overview
International Graphite (ASX:IG6) is a front-runner in the global graphite industry and is aiming to be one of the first new graphite producers.
The company’s vision for a complete mine-to-market supply chain in Western Australia leverages the state’s global reputation as a secure, reliable and technically advanced resource jurisdiction.
Primary focus is the production of active anode materials for lithium-ion batteries to address growing global demand and the forecast shortage looming for allied markets, particularly the US, Europe, Korea and Japan.
Since listing on the ASX in 2022, the company has made rapid headway in the development of two major assets – a planned graphite mine at Springdale and downstream processing facilities at Collie.
The company has been awarded AU$13.2 million in grants from Australian state and commonwealth governments in recognition of its significance to the development of Australia’s sovereign battery minerals capability.
International Graphite also secured a $4.5 million grant funding from the Western Australian Government to construct the first purpose-built commercial graphite micronising plant. About $2 million will be applied towards the ~3,000 tpa micronising facility to be built in Collie at an estimated capital cost of $4 million and the remaining $2.5 million will be applied to expand the facility and at least double capacity (Stage 2).
In addition, the Western Australian government has further earmarked AU$4 million from the Investment Attraction Fund's New Energies Industries Funding Stream to support the progression of the Springdale graphite project and the development of the Collie Processing Facility.
Market demand
Market attention worldwide is swinging to graphite which is essential for global decarbonization and fast becoming one of the most politically contested of all the critical battery minerals. The graphite market is projected to reach US$24.21 billion by 2031 driven by a CAGR of 5.20 percent.
Graphite is flexible, conductive, heat and corrosion resistant. For decades it has been used to manufacture everything from ceramics and lubricants to plastics and steel.
It is also a major ingredient in batteries of all kinds, making up 95 percent of the active anode in lithium-ion batteries which are the gold standard for electric vehicles, renewable energy storage and advanced medical, defense and aerospace devices.
Of all the components in a lithium-ion battery, the biggest volume is in graphite. It can take 50 to 100 kilograms of graphite to make a single EV battery – up to 10 times more graphite than lithium.
Currently, China supplies over 80 percent of the world’s processed graphite, so its decision to restrict exports to western customers came as a shock in late 2023.
Western nations are scrambling to find alternative supplies to meet existing commitments – and new supplies to meet the shortage of battery materials forecast in the next five years.
With limited graphite sources of its own, and limited prospects in the near term, the US is leading the way, closely followed by Europe, offering unprecedented incentives to fast-track graphite supply from reliable domestic and allied sources.
Company Highlights
- International Graphite (ASX:IG6) is developing a sovereign mine-to-market graphite supply chain in Western Australia, incorporating a graphite mine at Springdale, near Ravensthorpe on the south-coast, and downstream processing facilities in Collie, 200 km south of Perth.
- Primary focus is the production of active anode materials for lithium-ion batteries to address growing demand and a forecast shortage in allied markets, particularly the US, Europe, Korea and Japan.
- The 100 percent owned Springdale Graphite Project is one of the largest in Australia, with a current mineral resource estimate of 49.3 Mt @ 6.5 percent total graphitic content (TGC).
- Now in the final stages of feasibility and permitting, Springdale will host a multi-decade mine and concentrator operation ensuring a secure, reliable feed of graphite concentrates for value-added processing.
- Less than 10 percent of the tenement area and 20 percent of initial geological targets have been drilled indicating enormous potential for future resource expansion.
- In Collie, the company has established Australia’s first graphite R&D and downstream processing facility comprising pilot scale graphite micronizing and spheroidizing and qualification-scale graphite micronizing equipment. The facility has achieved independent ISO 9001 quality assurance certification, the most globally recognized standard for quality management systems.
- Design is well advanced and funding is in place for a commercial-scale micronizing plant due to be constructed at Collie in 2025. It will supply graphite products for traditional manufacturing and industrial applications, including lubricants, plastics and polymers.
- Australian state and commonwealth governments have awarded grants totalling AU$13.2 million, to fast-track the business in recognition of its importance to the nation’s critical minerals capability.
- Purification test work done on Springdale concentrates achieved 99.99 percent purity - well above highest purity anode material product specification of 99.97 percent.
- The company has an expert management team, with proven technical credentials, is committed to rigorous environmental, social and quality standards, and has strong government and community support.
Key Projects
Springdale Graphite Project
International Graphite owns 100 percent of the Springdale graphite project in the established mining centre of Hopetoun/Ravensthorpe, on the south coast of Western Australia.
Springdale is one of the largest graphite deposits in Australia and was named Discovery of the Year in the respected 2023 Prospect Awards.
Following an extensive drilling campaign in 2022-23, the resource estimate increased by more than 240 percent to 49.3 Mt @ 6.5 percent total graphitic content (TGC). This is expected to grow in the future as only 10 percent of the tenement area and 20 percent of initial geological targets have been drilled to date.
Springdale is the site of the company’s planned graphite mine which will provide a consistent and reliable feed of graphite concentrates for downstream processing and give the company full control of its supply chain. A scoping study, released in January 2024, showed the planned open pit operation would be globally cost competitive with a long, multi-decade mine life.
The planned mine is on cleared farmland, with easy access to established roads and infrastructure. Permitting activities are well underway and two mining leases have been granted. The regional community relies heavily on the mining sector and has applauded moves to establish a new operation in their area.
Metallurgical testwork on Springdale concentrates, completed by specialist testing laboratories in Australia and overseas, shows the high-grade, fine flake Springdale ore is ideally suited for the production of battery anode material. Bench scale micronising, spheroidising and purification testwork on graphite concentrates were undertaken by industry specialists ProGraphite GmbH and produced outstanding results. The tests produced two spherical graphite products – SpG11 and SpG18 – with a yield of up to 76 percent. Purification testwork reached 99.99 percent graphite purity – well above the usual specification for battery anode material at 99.97 percent.
International Graphite’s vision for a complete mine-to-market business is designed to achieve maximum value from its Springdale natural graphite resource and is closely aligned with the Australian government's critical minerals strategy and the Western Australian government's vision to establish new world-class industries in Collie.
Collie R&D and Processing Facility
International Graphite’s Collie R&D and Process Facility is a first for Australia and a key link in the company’s mine-to-market strategy.
Backed by an ISO 9001 quality assurance certificate, the Collie facility is home to pilot scale graphite micronizing and spheroidizing equipment, thermal purification equipment, and a qualification-scale micronizing plant that is currently producing sample products for assessment by potential customers in the industrial manufacturing and battery markets.
As well as being widely used in industrial products such as lubricants, plastics and polymers, micronized graphite is a critical conductive additive in battery cathodes. It is also the first stage in the production of active anode material for lithium-ion batteries.
International Graphite plans to expand micronizing at Collie to commercial scale with construction scheduled in 2025. At the same time, it is progressing plans for a separate advanced battery anode material manufacturing facility. The plant design will be tailored to process Springdale graphite concentrates.
Located 450 km by road from Springdale, and close to major export ports, the regional township of Collie is the centre of Western Australia’s electricity generating infrastructure.
Top left: Collie R&D and Process Facility. Top right: Micronizing qualification plant.
Bottom left: Qualification plant in operation. Bottom right: Australian Prime Minister Anthony Albanese inspects the Collie facility.
Management Team
Phil Hearse - Chairman
One of Australia’s leading metallurgists and an authority on graphite project development, Phil Hearse founded International Graphite in 2018 and continues to lead the company’s growth and development. An engineer with more than 40 years of experience in diverse and challenging projects around the world, his extensive career has taken him from operational and technical roles at Broken Hill, Bougainville Copper, Queensland Nickel (QNI) and Gove Alumina to senior executive and managerial positions in engineering and operating companies.
Hearse is the owner and managing director of Battery Limits, one of Australia’s leading graphite metallurgy and process engineering firms. The company has assisted many listed public companies to develop bankable feasibility studies for graphite mines and concentrators and has generated significant intellectual property in downstream processing and knowledge of the end use market. Hearse has an MBA from Hull University UK and a Bachelor of Applied Science in primary metallurgy from the University of SA. He is a fellow of the Australasian Institute of Mining and Metallurgy and a fellow of the Australasian Institute of Mining and Metallurgy.
Andrew Worland - Managing Director and Chief Executive Officer
Andrew Worland is a mining executive and experienced ASX/TSX director with over 25 years in senior finance, corporate, project management and marketing roles in the Western Australian mining sector.
Worland's commodity experience includes exploration, development and operations in lead, zinc, nickel, cobalt, gold, iron ore, molybdenum, copper and uranium. He has a Bachelor of Commerce with a major in finance and marketing from the University of Western Australia and is a qualified chartered company secretary and has achieved Fellow of the Governance Institute of Australia.
David Pass - Non-executive Director and Technical Director
David Pass has played a key role in the technical development of International Graphite since the company’s inception. A metallurgist with 30 years in the mining industry, he brings a mix of operational processing, process design, project, due diligence skills and management experience including mine operations experience with Barrick Gold.
Pass is chief executive officer of Battery Limits and an acknowledged expert in graphite primary and downstream processing and has led several studies in graphite project development to definitive feasibility level. He holds a Bachelor of Science in metallurgy from Murdoch University and is a member of the Australian Institute of Mining and Metallurgy.
Matthew O’Kane - Non-executive Director
Matthew O’Kane is a senior mineral industry executive and company director with 25 years’ experience in the mining, commodities, and automotive sectors. He has held senior leadership roles in Australia, the US and Asia, in both developed and emerging markets, from start-up companies through to MNC’s. He has served on the board of mining companies in Canada, Hong Kong and Australia, and is currently managing director of Comet Resources (ASX:CRL) and a non-executive director of Azarga Uranium (TSX:AZZ) and Pursuit Minerals (ASX:PUR). O’Kane has been a non-executive director of International Graphite since the company was listed in April 2022.
Robert Hodby – Chief Financial Officer and Company Secretary
Robert Hodby is a finance and accounting specialist with more than 20 years’ experience in the Australian resource and energy sector, including seven years as CFO and company secretary of Kibaran Resources(ASX:KNL), the predecessor to Australian graphite company EcoGraf (ASX:EGR). A member of CPA Australia and member of the Governance Institute of Australia, Hodby specializes in the financial management and administration of public and listed companies at both operational and corporate levels. During his career, he has held numerous executive and project management positions as well as CFO, board and company secretarial roles, with a strong track record in corporate finance, capital raising and international product marketing, particularly in the emerging graphite market.
Australian battery graphite from mine-to-market
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