International Graphite (ASX: IG6) has been granted key government funding to support construction of its graphite micronising plant in Collie, Western Australia—the country’s first purpose-built commercial graphite micronising plant.
The Collie plant is a key component of the company’s fully integrated graphite supply strategy that will see the battery material exported from WA to global markets.
International Graphite will receive $4.5 million under a funding agreement with the Department of Jobs, Tourism, Science and Innovation (JTSI) on behalf of the WA government.
Construction underway
“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,” chief executive officer Andrew Worland said.
“Critically, it will establish the company as a producer in the graphite industry and further build our technical skills as we progress our Springdale mine-to-market battery anode material strategy.”
The positive Collie news comes in the wake of International Graphite having obtained mining go-aheads for its promising Mason Bay and Springdale Central deposits in southern WA.
Progressive draw-down
International Graphite will be able to draw down from the JTSI grant progressively during Stage 1.
The balance of Stage 1 funding is to be met through the Australian government Critical Minerals Office grant, existing cash reserves and additional company contributions over the construction period.
The balance of the JTSI grant of $2.5m will be applied towards expansion of the facility in Stage 2.
Expansion plans
Mr Worland said the company plans to expand the Collie facility to around 10,000 tonnes per annum capacity.
“At those production levels, our Collie facility will be among the most significant global producers of micronised graphite outside of China,” Mr Worland said.
Earlier this year, a micronising qualification plant was commissioned at Collie and is already producing various flake product sizes.
Product samples are now planned to be available for potential customers to conduct qualification and acceptance assessments.
The company is targeting the completion of the definitive feasibility study by the end of this year.
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