International Graphite (ASX: IG6) has finalised an agreement to acquire a package of land in the Collie Light Industrial Area, south of Perth.
In another milestone for its “mine to market” strategy, the company is now working on detailed design for what would be Australia’s first commercial graphite micronising facility.
IG6 is purchasing three lots covering 6,000 square metres from the Development WA agency opposite its research and development facility, which houses the company’s pilot plant.
Plant and Equipment Ordered
The company has already ordered major plant and equipment items for the facility, which is targeting production of up to 7,500 tonnes per annum.
The Collie facility is a key component of International Graphite’s strategy, which also involves graphite mining at the Springdale project in Western Australia’s far south and international expansion into the European and US markets.
The company is now wrapping up power supply and council approval that will pave the way for construction to commence.
Pivotal Moment for Graphite
“The Collie Micronising Facility is coming online at a pivotal moment for global graphite supply,” chief executive officer Andrew Worland said.
“Interest from manufacturers has been strong, with many seeking reliable alternatives to tenuous overseas supply.”
International Graphte was one of the first businesses to move into the precinct, which the WA government developed to attract new industry and support economic diversification and growth in the region.
“The state government has taken a very strategic position and has played a key role in the progress we have made to date—premium land in WA’s southwest is becoming scarce [and] in developing this site, we expect to generate value well above the capital invested.”
Broad-Based Support
The company’s aggressive global expansion plans have already seen it attract significant local and international backing.
In October it received $3 million in support from US-based institutional investor Pioneer Resource Partners to support feasibility study work at Springdale and promote the Collie graphite processing operations.
The WA government has also provided a $12.5m package of grants over the past three years to help the company progress development of the Collie and Springdale projects.
