In mid-February a Perth-based dual-listed resources house took a major step towards establishing a sovereign national graphite project which entailed a ‘mine to market’ capability and integrated operations located within its home state of Western Australia.

In doing so, it moved further towards its goal of becoming a significant player in the global processed graphite market.

International Graphite Ltd (ASX: IG6) has just completed the successful wet commissioning of its new $1.5 million, 200 tonnes per annum graphite micronising plant in the coal mining town of Collie in WA using imported graphite concentrates.

To be known as the Collie BAM facility, it will provide battery anode materials (BAM) for the lithium-ion battery industry. If all goes to plan, it will produce a 95 per cent concentrate.

The company will source its feedstock from its Springdale mine near Hopetoun on the state’s southern coast.

As at September 23, the mining operation has a mineral resource estimate (at a 2 per cent cut off) of 49.3 million tonnes, with a graphite grade of 6.5 per cent for 3.2 Mt of contained graphite.

Using a 5 per cent cut off, these numbers are 28Mt, 8.7 per cent and 2.4Mt respectively.

During Vertical Events’ recent RIU Explorers Conference in Fremantle, International Graphite’s chief executive and managing director Andrew Worland said the micronised graphite products from Collie could be employed for a broad range of battery, energy storage and industrial uses such as thermal management, lubricants, engineered products, polymers and battery cathodes. In short it is a critical mineral for global decarbonisation.

Worland suggested the market was looking bright given electric vehicle (EV) sales were driving lithium-ion battery demand, with EVs now expected to be 35 per cent of all road transport in 10 years.

Worland also pointed out it was very rare to find an integrated project where both of the key elements (a mine and a downstream processing facility) were operating within the same jurisdiction.

He said the company was currently producing samples for customer acceptance.

Sales, and anticipated generating sales, agreements for its micronised product were expected later this year.

This, in turn, would underwrite the expansion of the Collie plant, allowing it to become a 4000t per annum facility.

Worland said micronised graphite would be sold to both Australian and international customers.

“The price is quite broad – between $1800 and $8,500 per tonne depending on purity and other specifications,” he noted.

Last September International Graphite completed a scoping study for the project. If all goes to plan, the definitive feasibility due diligence should be wrapped up by the end of this year.

As it stands the capital cost of the Springfield mine and associated concentrator is pencilled in at $76 million.

In this regard the all in sustaining cash operating cost is an estimated US$485t of concentrate.

Meanwhile, the capex for the Collie uncoated spherical purified graphite (USPG) plant is $124 million. If it was to produce a coated product (CSPG), though, an additional $217 million would be required.

Assuming the USPG route is taken, the average all in sustaining cash operating cost estimate comes in at US$1603t.

The CSPG figure, however, is higher at an estimated US$2,699t.

“A final investment decision will be made at the point at which the company considers it is suitably funded,” it said.

“A 12 month construction period has been assumed for Springdale and the Collie BAM facility, with both operating at nameplate capacity within 12 to 18 months of commissioning.”

In its last quarterly International Graphite said is it was building its operations on exemplary environmental, social and governance (ESG) performance.

The vertically integrated business model should provide product oversight from mine to customer, ensuring the company maintained control of its ESG practices along the complete supply chain.

“Strong collaborative relationships are a strategic priority based on the understanding that effective engagement results in better decision-making and more effective, sustainable outcomes for both the business and community,” it said.

International Graphite is listed on both the ASX and the Tradegate and Frankfurt Stock Exchange.

It is a member of the European Battery Alliance as well the European Raw Minerals Alliance.