AUS
NZ
UK
CA
USA
IND
Highlights
- Sarytogan has secured a 25-year mining licence for its graphite project in Kazakhstan, with the possibility of a 20-year extension.
- The licence covers an area of 8.88 km², and the company has met several regulatory requirements, including environmental permits and community engagement.
- Sarytogan has begun early works for its feasibility study, with trial samples being processed in Kazakhstan, Australia, and the USA.
Sarytogan Graphite Limited (ASX:SGA) has announced a major milestone with the granting of its mining licence for the development of its graphite mine in Kazakhstan. This approval from the Ministry of Industry and Construction of the Republic of Kazakhstan marks a significant step in the company's progress towards commercializing its high-grade graphite resource.
A Significant Step Forward for Sarytogan Graphite
Sarytogan Graphite Limited has received approval for its mining licence from Kazakhstan’s Ministry of Industry and Construction, enabling the company to begin formal operations on its high-grade graphite project. This mining licence is a crucial part of Sarytogan’s efforts to develop its world-class graphite resource, which boasts an impressive 229 million tonnes of mineral resource, with an average grade of 28.9% Total Graphitic Carbon (TGC).
The application process for the mining licence was extensive, requiring the company to meet a series of regulatory and environmental criteria. These included the negotiation of a Land Access Agreement with a local farm and land user, as well as the preparation and approval of a closure plan. Additionally, Sarytogan successfully converted its mineral resource estimate from the Australian JORC Code to Kazakhstan's KAZRC code, ensuring compliance with local standards.
Sarytogan also prioritized engagement with local communities, holding three public environmental hearings in nearby villages to inform the public about the project’s environmental and social impacts. This commitment to transparency was complemented by the receipt of the Environmental Permit in December 2024, another crucial requirement for securing the mining licence.
Terms and Conditions of the Mining Licence
The granted mining licence covers an area of 8.88 km² and is valid for an initial 25-year period, with the option for a 20-year extension. The licence is subject to minimum annual expenditure requirements, with the 2025 expenditure set at approximately US$67,000, significantly lower than the company’s previous exploration licence obligations. As part of the conditions, Sarytogan is also required to use at least 50% domestic services in its operations and invest in local workforce training and research and development.
Furthermore, the company will contribute approximately US$7,500 annually to support the socio-economic development of the region, as mandated by the licence. These conditions reflect Sarytogan’s commitment to supporting Kazakhstan’s industry and community.
Looking Ahead: Feasibility Study and Customer Engagement
Sarytogan is already moving forward with critical work for its feasibility study. As part of this, the company has started processing a 20-tonne sample from its trial mine, with plans to ship one tonne to Australia for flotation testing in the first quarter of 2025. In the second quarter, the sample will undergo further purification in the United States.
Simultaneously, Sarytogan has begun engaging potential customers to provide trial samples, which will be key to securing future off-take agreements. As these early-stage works progress, the company aims to deliver further updates to the market, particularly regarding customer interest and demand for its high-grade graphite.
Market Reaction
The announcement has been well received by investors, with Sarytogan’s share price rising by 6%, reaching 7 cents per share.
