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Highlights
- Strong financial outlook from FEED study for Collie plant.
- Expansion plans set to double production capacity.
- High-purity graphite achieved in tests, meeting battery-grade specifications.
International Graphite (ASX:IG6) has recently highlighted the promising financial prospects of its Collie micronising plant in Western Australia, as detailed by the latest front-end engineering and design (FEED) study results. This development is a crucial part of the company's strategy to establish a complete mine-to-market operation within Australia, featuring a combination of mining, graphite concentrate production, and advanced downstream processing.
The FEED study showcases potential average sales revenue of about $14.1 million annually from the current setup, with a clearly defined pathway for significant and cost-effective expansion. With an initial estimated capital investment of $6.3 million covering infrastructure such as building design and civil works, the plant is well-positioned for future growth.
International Graphite's CEO, Andrew Worland, emphasized the robust economic performance projected for the Collie facility, aiming to position the company as a key player on the international stage in the industrial graphite sector. He stated, "The economics for the Collie micronising facility are strong—successful implementation and a progressive expansion option would rank International Graphite as an international force in the industrial graphite market."
The company's strategy includes leveraging the Collie plant to boost market development and generate early cash flow, which would support further development of their 100%-owned Springdale graphite project in southern Western Australia.
The potential for scaling up production was also a highlight of the FEED study, which suggested that micronised graphite production could nearly double, pushing average sales revenue up to around $28 million per year. This increase would require an additional capital expenditure of just $1.7 million, indicating a cost-effective expansion route.
Adding to the positive news, recent test work conducted in February by top-tier Japanese chemical processing specialists yielded high-purity results. These tests, coordinated by Japan's Marubeni Corporation, returned a graphitic carbon purity of up to 99.97% from Springdale concentrates, satisfying the stringent purity standards required for lithium-ion battery anode materials.
The successful test outcomes and strategic developments at the Collie plant mark significant milestones for International Graphite, underscoring its commitment to becoming a leader in the graphite industry, both in Australia and internationally.
