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Overview
Unprecedented demand for battery metals is swinging attention to graphite and the critical role it plays in the batteries needed to power electric vehicles and renewable energy, and global hopes for a sustainable future.
Traditionally, graphite hasn’t commanded the same publicity as peers like lithium and cobalt, but it is graphite’s importance in battery production and electrification that is set to drive demand through the roof.
Of all the components in a lithium-ion battery, the biggest volume is in graphite which makes up 95 percent of the battery anode. It can take 50 to 100 kilograms of graphite to make a single battery – up to 10 times more graphite than lithium.
Photo credit: Visual Capitalist
Analysts agree that demand for graphite is inextricably linked to the surging demand for clean energy and graphite is in limited supply. The world now faces a significant shortage – one which will only grow more severe as economies ramp up their efforts to achieve net-zero.
The United States alone predicts a graphite shortfall of up to 1.2 million metric tons by 2030, to say nothing of how severe the shortage is likely to be on a global scale.
The graphite supply chain is racing to keep pace. Benchmark Mineral Intelligence predicts the world will need at least 97 new flake graphite mines by 2035. Although opening new graphite mines is a good start, the raw material alone will not meet the need for high quality, processed graphite suitable for making battery anodes. Currently, nearly every kilogram of battery anode material is processed through China and battery manufacturers worldwide are looking for additional and alternative supply. The pressure is on resource nations worldwide to develop downstream processing capability.
This is where International Graphite (ASX:IG6) comes in. Based in Western Australia, the company is developing one of Australia’s first fully integrated producers of battery anode graphite. It is establishing a new graphite supply for global battery manufacturers built on Australia’s track record for sophisticated exploration, resource definition, engineering and minerals processing, investment attractiveness and high standards of environmental, social and governance (ESG) performance.
International Graphite is currently developing operations on two fronts – a planned graphite mine at Springdale, on Western Australia’s south coast, and a state-of-the-art research and downstream processing hub in the industrial town of Collie, with separate plants for advanced battery anode material and graphite micronising.
The company’s high-grade natural flake resource at Springdale is being developed as an open-cut mine producing graphite concentrate for planned downstream processing operations at Collie.
A pilot scale micronising and spheroidising plant has been commissioned at Collie, which is in the center of Western Australia’s main electricity generation grid. An approximately 4,000 tons per annum (tpa) graphite micronising facility is expected to be operational in 2024.
The company’s vision for a complete mine-to-market business is designed to achieve maximum value from the natural graphite resource. Operating exclusively in Western Australia, it leverages one of the most attractive jurisdictions in the world for resource investment with the backing of a supportive government policy and an ethical graphite supply chain built on the United Nations Sustainable Development Goals.
Ultimately, International Graphite is designing its entire business to be as efficient and sustainable as possible, bringing new supplies to market, new jobs to Australian regional communities and new export opportunities to the nation. Its model is closely aligned with the Australian Government’s new critical minerals strategy and the Western Australian Government’s vision for a world-class renewable energy and battery hub around Collie. To date, the company has received more than A$6.7 million in combined state and federal government investment.
Company Highlights
International Graphite (ASX:IG6) is developing as one of the first Australian producers of processed graphite products with complete supply chain oversight from mine-to-market.Primary focus is battery anode material for lithium-ion batteries, supporting the global revolution in electric vehicles and green energy technologies. Operating exclusively in Western Australia, one of the world’s most reliable and attractive jurisdictions for resource investment.100-percent company-owned graphite resource at Springdale will support a long life mining operation ensuring a secure, stable supply of graphite concentrate for value-added processing.Downstream facilities located in Collie – the heart of Western Australia’s power generation infrastructure.Pilot plant commissioned with commercial micronising scheduled to be operational by 2024.Business underpinned by strong technical expertise, and rigorous environmental social and governance standards.Strong community support including A$6.7 million government investment.
Key Projects
Springdale Graphite Resource
Outstanding results have been achieved from exploration drilling at Springdale, on Western Australia’s south coast, where International Graphite owns a high-grade fine flake graphite deposit.
Comprising three exploration licenses and a prospecting license covering a total area of 180 square kilometers, International Graphite’s Springdale Project is located 25 kilometers east of Hopetoun and 150 kilometers from the port of Esperance on Western Australia’s south coast.
An extensive drilling program has been completed identifying four new graphite targets from the first of seven potential anomalies identified by Aeromagnetic Survey. These are located very close to the existing mineral resource. Extensive areas are yet to be investigated and the company is confident that additional reserves will be discovered in the future.
Metallurgical testing has shown that the Springdale resource is well-suited to battery anode material production and would support a long-lived shallow open-pit mining operation.
The company is currently working to update its mineral resource estimate for the project with mine construction possible as early as late 2024.
Project Highlights:
Promising Geology: The project is located on cleared agricultural land and within the Albany Frazer Belt, one of Australia’s foremost exploration regions. Existing Resource: An inferred mineral estimate puts the Springdale Resource at 15.6 million tons of graphite at 6 percent total graphitic carbon content (TGC), including a high-grade inferred mineral resource of 2.6 million tons at 17.5 percent TGC. Outstanding Prospectivity: A new mineral resource estimate is due for release in 2023 to account for new graphite discoveries during the 2022-2023 drilling. These are the first of seven potential targets identified by aeromagnetic survey. The project is highly prospective with extensive areas close to the existing resource yet to be investigated.Excellent Drilling Results: The company has completed 20,466 meters of drilling since June 2022, building on 7,900 meters of prior drilling. Results include four new graphite discoveries and confirmation of high-grade domains in existing resource model and block performance.Sustainable Mining: Mining will involve multiple shallow open pits, targeting weathered/oxide mineralization zones. The operation will primarily comprise free digging with limited drilling and blasting.High-quality Mineralization: Metallurgical analysis has shown that a 95 percent graphite concentrate can be made from Springdale and can be upgraded to battery grade 99.95 percent through purification. Downstream Processing: Graphite concentrates produced at Springdale will be transported 450 kilometers by road to Collie, where International Graphite plans to construct a graphite micronising facility and an advanced battery anode material manufacturing plant. A pilot micronising plant – one of the most advanced of its kind in Australia – was commissioned in 2022.
Collie Downstream Processing
International Graphite’s multifaceted processing operation will incorporate state-of-the-art research and development facilities with separate operations for graphite micronising and battery anode material production.
To date, the company has successfully commissioned a pilot scale graphite micronising and spheroidising plant, which has the distinction of being the most advanced facility of its kind in Australia. Larger qualification-scale micronising and spheroidising equipment is on track for delivery in Q3 2023.
Planning and design is well underway. A definitive feasibility study has been completed for a commercial micronising plant, with a nominal capacity of 4,000 tpa. The plant is expected to be operational before the end of 2024 and will provide early cashflow for the business, as well as the opportunity to establish markets for the micronising product. As well as being a product in its own right, micronised graphite is also a by-product in the production of battery anode material.
An initial scoping study has been released for the establishment of a plant to produce coated and uncoated purified, spheroidised graphite and land has been selected at Collie for the construction of the facilities.
Located at the southern end of Western Australia’s main industrial strip, the town of Collie has a number of strategic advantages for industry. The State Government has committed an unprecedented A$650 million to support regional economic growth and the transition to renewable energy.
Highlights:
Emerging battery and renewable energy hub:Collie is the center of Western Australia’s electricity generation infrastructurestrong investment in renewables ensures ready access to “green” power skilled technical workforce and training facilities efficient transport with extensive road and rail infrastructurestrong community and government support for International Graphite
Established R&D Facilities: first premises and R&D hub established in Collie light industrial area pilot scale micronising and spheroidising plant successfully commissioned in 2022micronising qualification-scale equipment being installed to support product testing, customer agreements and market acceptanceAustralia’s first high thermal graphite furnace on site – supporting the development of graphite purification processesGraphite Micronising Facility: definitive feasibility study completed for a 4,000-tpa micronising plant – one of the first of its kind in Australiamicronised products will generate cash flow, introduce the IG brand and establish markets for future by-products from battery anode material productionplant expected to be operational before the end of 2024
Battery Anode Material (BAM) Facility:site for the future BAM plant selected at Collie. scoping study released with economic modeling showing strong business caseproposed facilities capable of processing up to 40 kt/y of graphite concentrates to produce uncoated and coated purified/spheroidising/coated graphite suitable for BAM
Key Management Personnel
Phil Hearse – Chairman
One of Australia’s leading metallurgists and an authority on graphite project development, Phil Hearse founded International Graphite in 2018 and continues to lead the company’s growth and development. An engineer with more than 40 years’ experience in diverse and challenging projects around the world, his extensive career has taken him from operational and technical roles at Broken Hill, Bougainville Copper, Queensland Nickel (QNI) and Gove Alumina to senior executive and managerial positions in engineering and operating companies.
Hearse is the owner and managing director of Battery Limits, one of Australia’s leading graphite metallurgy and process engineering firms. The company has assisted many listed public companies to develop bankable feasibility studies for graphite mines and concentrators and has generated significant intellectual property in downstream processing and knowledge of the end use market. Hearse has an MBA from Hull University UK and a Bachelor of Applied Science in primary metallurgy from the University of SA. He is a fellow of the Australasian Institute of Mining and Metallurgy and a fellow of the Australasian Institute of Mining and Metallurgy.
Andrew Worland – Managing Director and Chief Executive Officer
Andrew Worland is a mining executive and experienced ASX/TSX director with over twenty five years in senior finance, corporate, project management and marketing roles in the Western Australian mining sector.
Worland’s commodity experience includes exploration, development and operations in lead, zinc, nickel, cobalt, gold, iron ore, molybdenum, copper and uranium. He has a Bachelor of Commerce with a major in finance and marketing from the University of Western Australia and is a qualified chartered company secretary and fellow of the Governance Institute of Australia.
David Pass – Non-executive Director & Chief Technical Officer
David Pass has played a key role in the technical development of International Graphite since the company’s inception. A metallurgist with 30 years in the mining industry, he brings a mix of operational processing, process design, project, due diligence skills and management experience including mine operations experience with Barrick Gold.
Pass is chief executive officer of Battery Limits and an acknowledged expert in graphite primary and downstream processing and has led several studies in graphite project development to definitive feasibility level. He holds a Bachelor of Science in metallurgy from Murdoch University and is a member of the Australian Institute of Mining and Metallurgy.
Robert Hodby – Chief Financial Officer and Company Secretary
Robert is a finance and accounting specialist with more than 20 years’ experience in the Australian resource and energy sector, including seven years as CFO and Company Secretary of Kibaran Resources Limited, the predecessor to Australian graphite company EcoGraf. A member of CPA Australia and member of the Governance Institute of Australia, Robert specializes in the financial management and administration of public and listed companies at both operational and corporate levels. During his career, he has held numerous executive and project management positions as well as CFO, board and company secretarial roles, with a strong track record in corporate finance, capital raising and international product marketing, particularly in the emerging graphite market.