Mining

International Graphite signs key construction contract for Collie micronising facility

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By Colin Hay - 
International Graphite ASX IG6 update Collie Graphite Micronising Facility
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International Graphite (ASX: IG6) has signed a key contract for the ongoing development of its Collie micronising facility, south of Perth.

Boosted by the positive result from a recently completed front-end engineering and design (FEED) study, the company is ramping up contract agreements for the proposed $6.3 million facility it is forecasting will produce approximately 4,000 tonnes of graphite per year.

The Collie plant is an important component of the company’s mine-to-market strategy aimed at providing graphite supply for growing markets in the US, Europe and Asia.

Detailed design work

International Graphite has named Bunbury-based construction company Prosser Built to progress detailed design of the facility, which is expected to move into construction once it has completed the design and approvals process.

Prosser is one of more than 50 local companies International Graphite has engaged as part of the project’s contribution to the regional economy and Collie economic transition program.

The Prosser Built agreement includes a supply contract for the manufacture of micronising process equipment, with the first commitment being the provision of detailed engineering drawings to the local design team.

A $4.5m grant from the Western Australian government is supporting development of the facility.

Processing plant

At the same time as construction advances, the company is continuing to batch operate its Collie graphite processing and R&D facility.

The operation includes a qualification-scale micronising plant that will produce products for customer testing and validation.

International Graphite has already achieved early sales success at the facility through the processing of 1,216 kg of graphite concentrates and micronised and spheroidised graphite in size fractions from 15 micrometres (μm) to 45μm.

Two-pronged development

The company’s strategy involves mining graphite concentrate from its 100%-owned Springdale project in the south of WA and then processing it at Collie.

The strategy is receiving strong reactions from potential markets and recently received positive feedback from the US Department of Defense on a proposal for up to approximately $115.5m in feasibility study funding.

In February, Japanese commodity trader Marubeni Corporation’s purification test work of material from Springdale achieved a battery-grade specification of approximately 99.95% purity.