International Graphite Limited (ASX:IG6) has released the findings of a Scoping Study for its proposed Collie Graphite Battery Anode Material (BAM) Facility, confirming it would produce high-grade battery anode materials for the lithium-ion battery and generate outstanding financial returns.
The flowsheet involves graphite micronising, spheroidising and non-HF chemical purification to produce uncoated spheroidised purified graphite (USPG), then carbon coating to produce coated spheroidised purified graphite (CSPG).
Commenting on the Scoping Study, Managing Director and CEO Andrew Worland said: “Our expert graphite metallurgists and engineers have applied their collective expertise in graphite metallurgy, process design, flowsheet development, estimation and markets, to present a compelling development pathway for the Collie Graphite BAM Facility.
“The economics are outstanding and there are many opportunities to improve the cost structure with further testwork.
“The financial modelling of the Scoping Study applies long term forecast pricing for CSPG.
“Current and forecast natural graphite supply is well below the levels required to meet global decarbonisation goals from the uses of the lithium-ion battery.
“The plant has been designed as two parallel lines and could be implemented in stages, including developing a USPG facility in the first instance before expanding into coating.
“The total capital cost to produce CSPG is estimated at approximately US$222 million and its operations are forecast to deliver a pre-tax – pre finance NPV10 of approximately US$626 million and IRR of approximately 41 per cent.
“As an initial step, the total capital cost to produce USPG is estimated at approximately US$87 million and its operations are forecast to deliver a pre-tax – pre finance NPV10 of approximately US$290 million and IRR of approximately 48 per cent.
“We are working with a number of stakeholders in Collie to agree on site selection for the Collie Graphite BAM Facility to accommodate the initial graphite concentrate processing capacity of up to 40 kilotons a year and potential further expansions.”