Connect with us

Hi, what are you looking for?

Investing

$4.5M Government Grant Secures Construction Start for Collie Micronising Facility

International Graphite Limited (ASX: IG6) has secured funding to construct the first purpose- built commercial graphite micronising plant in Australia.

HIGHLIGHTS

$4.5M grant funding agreement signed with the Western Australian Government. $2.0M to be applied towards ~3,000 tpa micronising facility to be built in Collie at an estimated capital cost of ~$4.0M (Stage 1). Stage 1 is expected to be fully funded to mechanical completion. The remaining $2.5M will be applied to expand the facility and at least double capacity (Stage 2).

The Company has entered into a funding agreement with the Department of Jobs, Tourism, Science and Innovation (JTSI) on behalf of the State Government of Western Australia for $4.5 million of the grant announced by the Premier of Western Australia, the Hon Roger Cook, on 22 April 20241 (JTSI Grant).

Managing Director and CEO Andrew Worland said: “We are excited to be pushing ahead with the construction of the new plant at Collie. Establishing a micronising business in Collie has been an important step in our development plans. Critically it will establish the Company as a producer in the graphite industry and build further our technical skills as we progress our Springdale mine to market battery anode material strategy.”

Stage 1 of the JTSI Grant is available to be drawn down progressively over the project construction period as milestones are achieved. The balance of Stage 1 funding is to be met through funding awarded to the Company under the Australian Government Critical Minerals Office grant2, existing cash reserves and additional Company contributions over the construction period, including future R&D rebates.

The balance of the JTSI Grant of $2.5 million will be applied towards expansion of the facility in Stage 2. Ultimately, the Company envisages expanding the Collie Micronising Facility to around 10,000 tpa capacity. It is expected to produce 95% total graphitic content (TGC) and 99% TGC micronised products from graphite concentrates produced at the Company’s 100% owned Springdale Graphite Project, on the south coast of Western Australia, once the mine is in production.

“At those production levels, our Collie facility will be amongst the most significant global producers of micronised graphite outside of China”, Mr. Worland said.

A front-end engineering and design (FEED) study is expected to be completed over the coming months which will confirm the implementation schedule and forecast economics for Stage 1.

The critical path items for the project include local building approvals, construction of new buildings and connection to services, including to the electricity grid, on new development lots adjacent to the Company’s existing facilities in Collie.

Building the project in two stages has been made possible, in part, by the operating experience gained from the Collie Graphite Processing & R&D Facility. Opened in 2022, the exiting facility includes pilot scale micronising and spheroidising equipment and a qualification scale micronising plant.

The facility has been instrumental in optimising equipment selection, vendor assessment, operating conditions and scaling of Stage 1 production capacity to achieve lower unit capital costs than was envisaged in the original 2023 feasibility study.

Click here for the full ASX Release

This post appeared first on investingnews.com
Enter Your Information Below To Receive Free Trading Ideas, Latest News And Articles.

    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like

    Latest News

    In what could potentially be President Biden’s last foreign diplomacy trip, he will soon head to South America to meet with global leaders, including...

    Latest News

    Ranked choice voting suffered a blow as several states, including Nevada, Oregon, Colorado and Idaho rejected measures last week. In Colorado, Proposition 131 would...

    Investing

    Cobalt market watchers are warning that a near-term resurgence in prices and demand may not occur. Cobalt prices have spent most of 2024 on...

    Latest News

    Sen. Rick Scott, R-Fla., was knocked out of the Senate leader race after the first secret ballot on Wednesday morning, during which none of...

    Disclaimer: Earlyagenda.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.


    Copyright © 2024 Earlyagenda.com