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Which are the factors catalysing the growth of BlackEarth Minerals?

Summary

  • BlackEarth Minerals is focused on ensuring its low-risk/CAPEX entry into the downstream market as part of the expandable graphite strategy.
  • The Company enjoys strong market prospects with end users becoming more concerned about graphite supply security.
  • BlackEarth’s priority to formalise a JV with Metachem can leverage Indian workforce along with the availability of the necessary raw materials.

BlackEarth Minerals NL (ASX:BEM) is on track to become a material, vertically integrated global graphite business by channelising its endeavours to leverage the upbeat graphite market conditions. 

The significant progress has been backed by BlackEarth’s Madagascan Maniry graphite project, proving to be a tower of strength for the Company’s fast-paced growth plans as it advances stage 1 downstream operations. 

On that note, let us look at the critical growth areas catalysing the Company’s solid growth potential.

Significant expansion potential of Maniry Graphite Project

The Maniry Graphite project area has a mine life of more than 40 years with the granted mining lease of 40 years over the Razafy resource. Moreover, the project tenement with more than 35 large outcropping graphitic areas stretches for more than 20 square kilometres, with only 10% of the total area extensively explored. 

ALSO READ: BlackEarth Minerals (ASX: BEM) delivers an excellent March quarter, marked by exciting graphite developments

The project enjoys a significant advantage, owing to its presence in Madagascar.  

  • Madagascar boasts over a century-old graphite production history.
  • It is the largest supplier of graphite into China and the second largest into India.
  • The African country is counted among the leading five graphite suppliers into the US.

In addition to the proven location, the project also boasts quality resources and an extensive exploration target. The Maniry graphite product has been tested by tier 1 users, qualifying the suitability of samples across a diverse range of applications. 

BlackEarth intends to complete the Definitive Feasibility Study (DFS) by early 2022, with plant commissioning planned in 2023. 

ALSO READ: BlackEarth Minerals Appoints Maniry Project Manager and Wraps Up Stage 2 Pilot Work

An overview of BEM’s expandable graphite strategy

The Company is focused on ensuring its low-risk/CAPEX entry into the downstream market, which would allow a higher revenue stream and expedite cash flow, thereby driving shareholders’ value. 

NGS Trading & Consulting GmbH has indicated that the flake graphite flotation concentrate (ALS 19212) from the Maniry project is well suited for preparing expandable graphite, with no limitation on the application of flake graphite. 

The Maniry graphite product seems well-positioned to excel amid the upbeat market prospects on the back of robust demand outlook. At the same time, the world faces an impending shortage in the supply of coarse flake used as raw material. 

ALSO READ: BlackEarth Minerals kicks off extensive drilling program at Maniry Graphite Project

The Company prioritises finalising a joint venture with India-based Metachem, which has an exemplary reputation with tier 1 global buyers. Notably, the availability of India’s well educated and cost-competitive workforce, along with the availability of the necessary raw materials, can prove significant for advancing the Company’s operations.

Significantly, rising electric vehicle demand along with the growing prominence of Environmental, Social and Governance (ESG) provides strong tailwinds to the Maniry graphite product.

ALSO READ: BlackEarth Minerals (ASX:BEM) partners Metachem to develop expandable graphite plant

 

Source: Copyright © 2021 Kalkine Media, Data Source: BEM Presentation, dated 5 July 2021

BEM shares traded at A$0.105 on 5 July 2021, up ~5% from the previous close.

 

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