Renascor Resources updates market on progress at graphite project in Australia

ASX-listed Renascor Resources is advancing towards a final investment decision for the world’s first integrated, in-country mine and purified spherical graphite (PSG) operation outside of China.

The company provided an update on recent progress at its 100%-owned Siviour graphite project in South Australia. GR Engineering Services has been acting as study manager and engineering designer for the project’s optimised Battery Anode Materials Study.

The study is assessing an increase in PSG production capacity, as well as additional staged expansions of PSG operations in order to meet projected demand. Studies to date have considered an initial Stage 1 production capacity of 28,000 tonnes per annum (tpa) PSG.

Renascor also confirmed that the Australian Government, via Export Finance Australia (EFA), conditionally approved an A$185 million loan facility to support the development of the project in February. The company and EFA are targeting to conclude formal loan facility and security documentation by mid-2022.

Offtake agreement discussions are also continuing with interested parties from Korea, Japan and China. The indicative demand from these discussions is in excess of 60,0000 tpa of PSG, Renascor said.

PSG, which is used in the production of anodes for lithium-ion batteries, is experiencing further substantial upward price improvement, with Fastmarkets reporting PSG prices of US$3,500 to US$3,800 per tonne – a 40% increase over the last six months.

@RGNonline