International Graphite’s Springdale project a potential critical mineral source for US and Europe
Geopolitical events during the March quarter have strengthened International Graphite’s (ASX: IG6) belief that its Springdale project in Western Australia has the potential to become a significant critical mineral source for the US and Europe.
Managing director Andrew Worland said that developing alternative graphite sources was imperative if the US and Europe hoped to secure continuity of supply for the manufacture of defence- and energy storage-related applications.
“Australia — and in particular WA — is one of the few jurisdictions where graphite can be sourced free from the civil and political instabilities that continue to plague most of the existing graphite production sources worldwide,” he said.
US executive order
US president Donald Trump issued an executive order last month titled Immediate Measures to Increase American Mineral Production, mandating an aggressive timeline to accelerate domestic mineral production by streamlining regulatory processes.
He also announced a suite of international tariffs designed to increase the nation’s competitive edge and strengthen its national security—with one important omission.
“The exemption of graphite from the general tariff being applied to Australia signals the importance of natural graphite imports to the US defence and commercial sectors,” Mr Worland said.
“These policy announcements highlight the global opportunities emerging for our company as a frontrunner in Australia’s critical graphite supply chain.”
Collie FEED study
A front-end engineering and design (FEED) study the company released last month confirmed the strong financial viability of its planned $12.5 million graphite micronising facility at Collie.
International Graphite expects to commence operations before year-end at the 4,000-tonnes-per-annum commercial plant, one of the first of its kind in Australia.
It is currently the centre of a research and development program for battery anode material and will use third-party fine flake graphite as feedstock until the Springdale graphite mine commences production.
‘Pivotal first step’
“Development of the Collie processing facility is a pivotal first step in the build-out of our planned portfolio of Australian and international processing facilities,” Mr Worland said.
“We believe the key to advancing graphite resource projects is having control of value-adding downstream processing to supply both industrial manufacturing and battery anode markets.”
Mr Worland said the company had been focusing on progressing plant design and procurement activities including contract awards for building design and construction, planning for power upgrades, project approvals and discussions on the acquisition of lots in the Collie light industrial area.
Site visits
International Graphite hosted representatives from integrated trading and investment conglomerate Marubeni Corporation on site visits to Springdale and Collie during the quarter.
The company has been collaborating with Marubeni on the potential supply of spheroidised graphite from Springdale and potential financial support for its mine-to-market strategy.
Marubeni is looking to expand its access to critical minerals and is exploring global avenues to secure graphite products in support of Japan’s growing battery and motor vehicle manufacturing industries.