International Graphite charts new course with groundbreaking WA project

International Graphite’s (ASX: IG6) plan to develop a unique graphite mining and processing business in Western Australia has gained further momentum with the release of the results of a new scoping study.

The Springdale–Collie integrated mine-to-market scoping study has highlighted the potential of the company’s twin developments.

International Graphite managing director and chief executive officer Andrew Worland said the results support the company’s confidence that Springdale would be a project of global significance for Australia in the critical battery minerals supply chain.

“We now have a clear economic and financial view of the breadth of the Springdale–Collie mine-to-market strategy.”

“Springdale compares exceptionally well with its industry peers across a range of measures, particularly the forecast mine capital and operating costs.”

The scoping study focused on a mine-to-market operation and confirmed a globally-competitive cost structure with a multi-decade operating life.

It also confirmed robust project economics with significant potential for expansion at the Springdale and Collie operations.

The company is now targeting the completion of a definitive feasibility study by the end of calendar year 2024.

Significant resource upside

Mr Worland said the Springdale mineral resource estimate (MRE) released in September provides a compelling argument for expanding future operations beyond the Springdale scoping study base case.

“Less than 15% of the current Springdale MRE has been scheduled and modelled so far and the production plan has yet to be optimised at this early stage of investigation.”

“Our immediate focus is to move rapidly through the definitive feasibility phase for Springdale and to accelerate further in-fill resource and exploration drilling at Mason Bay, one of the newest graphite finds at Springdale, so we can continue expanding and upgrading the current MRE.”

The new scoping study incorporates a preliminary technical and economic investigation to assess the viability of developing a graphite mining and concentrate production operation at the Springdale graphite project on the south coast of WA.

International Graphite plans to supply Springdale graphite concentrates to a downstream processing facility at Collie, 200km south of Perth.

The Collie operation, known as the Collie BAM facility, would produce battery anode materials (BAM) for the lithium-ion battery industry.

Collie BAM study

An initial scoping study for the Collie BAM facility was released in late April 2023 and has now been updated, based on using concentrates produced at Springdale instead of imported graphite feedstock.

The results form the basis of the Springdale–Collie integrated mine-to-market scoping study.

Key metrics in the study’s base case for the first 15 years of operation include Springdale concentrator throughput of 500,000 tonnes per annum using a feed grade average of 9.5% total graphitic content.

This would see Springdale produce an average of 45,000tpa concentrate.

The initial Springdale capital cost of the mine and concentrator is estimated at $76 million.

The project would also produce an average 20.0ktpa of uncoated spherical purified graphite and an average 18.6ktpa of coated spherical purified graphite production.

Government backing

Mr Worland said the company has received strong support from state and federal governments and the local communities of Hopetoun, Ravensthorpe and Collie.

“Graphite for batteries is fast becoming the centre of geopolitical tensions and highly sought after, particularly after the Chinese government’s recent decision to restrict the export of its graphite products,” he said.

“China currently supplies more than 80% of the world market. This leaves the global battery supply chain highly exposed.”

“Firms across Europe, North America, Korea and Japan have made enormous commitments to build out battery gigafactory capacity and they all rely on a stable, reliable and consistent supply of raw materials, including graphite.”

“Operating entirely in WA strengthens the company’s position as a supplier of first choice for global markets.”