International Graphite set to continue aggressive push after receiving second government grant tranche
International Graphite’s (ASX: IG6) mine-to-market capability strategy has received a further financial boost with the company receiving another tranche of funding from the Australian government.
The new $1.25 million payment is the second provided to the company under a $4.7m Australian government Critical Minerals Development grant announced earlier this year.
Managing director and chief executive officer Andrew Worland said the new payment will be used to continue the company’s aggressive push into the graphite market supporting continued feasibility work at the Springdale graphite project on the south coast of Western Australia and operations at the Collie downstream graphite processing facilities 200km south of Perth.
Springdale was named “Discovery of the Year” in the 2023 Australian Mining Prospect awards.
In September, the project was confirmed as the second-largest known graphite deposit in Australia with a significant increase to its mineral resource estimate.
The new study saw the Springdale mineral resource estimate grow from 15.3 million tonnes at 6.0% total graphitic carbon (TGC) to 49.3Mt at 6.5% TGC, with an “indicated” category total of 11.5Mt at 7.5% TGC and an “inferred” category number of 37.8Mt at 6.1% TGC.
Scoping study nearing completion
The financing comes at an ideal time as a scoping study for Springdale is nearing completion with the full report to be completed over the Christmas-New Year break and results planned for release in January 2024.
Elsewhere, installation of the graphite micronising qualification plant and dry commissioning at Collie is on target to be completed within the week.
International Graphite’s Springdale and Collie plans are part of its overall strategy to process graphite products, including battery anode material, to support the booming electric vehicle and renewable energy markets.
Micronised graphite products
Mr Worland said that processing of imported graphite concentrates will commence in the new year to produce micronised graphite products of various sizes for customer validation and qualification.
The development of a commercial-scale graphite micronising business in Collie will be a key milestone and an opportunity for International Graphite to generate cashflow during the development phases of Springdale, the Collie facilities and beyond.
Mr Worland said the use of micronised graphite of various particle size and purity is attracting growing market interest, including its use in energy storage (batteries), thermal management, engineered products, lubricants, polymers and plastics.
He said the production of battery anode material commences with the micronising of graphite concentrates.
The second step, spheroidising – or shaping the graphite – produces micronised fines as a by-product for further upgrading or sale.
Final decision pending
The company is aiming at making a final investment decision for its planned $12.5 million, 4,000 tonnes per year commercial micronising operation at Collie in the first half of 2024.
International Graphite believes the location of the Springdale graphite project and vertical integration into the tier one resource jurisdiction of Western Australia provide it with an advantage in a rapidly-growing global market currently dominated by China.