International Graphite Limited (ASX: IG6) has secured funding to construct the first purpose- built commercial graphite micronising plant in Australia.
HIGHLIGHTS
- $4.5M grant funding agreement signed with the Western Australian Government.
- $2.0M to be applied towards ~3,000 tpa micronising facility to be built in Collie at an estimated capital cost of ~$4.0M (Stage 1).
- Stage 1 is expected to be fully funded to mechanical completion.
- The remaining $2.5M will be applied to expand the facility and at least double capacity (Stage 2).
The Company has entered into a funding agreement with the Department of Jobs, Tourism, Science and Innovation (JTSI) on behalf of the State Government of Western Australia for $4.5 million of the grant announced by the Premier of Western Australia, the Hon Roger Cook, on 22 April 20241 (JTSI Grant).
Managing Director and CEO Andrew Worland said: “We are excited to be pushing ahead with the construction of the new plant at Collie. 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.”
Stage 1 of the JTSI Grant is available to be drawn down progressively over the project construction period as milestones are achieved. The balance of Stage 1 funding is to be met through funding awarded to the Company under the Australian Government Critical Minerals Office grant2, existing cash reserves and additional Company contributions over the construction period, including future R&D rebates.
The balance of the JTSI Grant of $2.5 million will be applied towards expansion of the facility in Stage 2. Ultimately, the Company envisages expanding the Collie Micronising Facility to around 10,000 tpa capacity. It is expected to produce 95% total graphitic content (TGC) and 99% TGC micronised products from graphite concentrates produced at the Company’s 100% owned Springdale Graphite Project, on the south coast of Western Australia, once the mine is in production.
“At those production levels, our Collie facility will be amongst the most significant global producers of micronised graphite outside of China”, Mr. Worland said.
A front-end engineering and design (FEED) study is expected to be completed over the coming months which will confirm the implementation schedule and forecast economics for Stage 1.
The critical path items for the project include local building approvals, construction of new buildings and connection to services, including to the electricity grid, on new development lots adjacent to the Company’s existing facilities in Collie.
Building the project in two stages has been made possible, in part, by the operating experience gained from the Collie Graphite Processing & R&D Facility. Opened in 2022, the exiting facility 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.
Click here for the full ASX Release