International Graphite (ASX:IG6) has signed a funding agreement with the Commonwealth of Australia for a grant of $4.7 million under the national Critical Minerals Development Program.
Speaking to Mining.com.au, International Graphite Chief Financial Officer (CFO) and Company Secretary Robert Hodby says the grant will enable the company to fast-track the Springdale Graphite Project and the downstream processing facility at Collie in Western Australia.
“So we’ve got a couple of different projects on the go at the moment. We’re trying to get the mine open at Springdale to provide feedstock for a processing facility at Collie.
“We’re trying to get the mine open at Springdale to provide feedstock for a processing facility at Collie”
This grant will enable us to move both the feasibility study for the Springdale Mine and also a feasibility study for a battery anode material at Collie — that enables us to fast-track those. There’s a third part of it, as well: it will help us implement a micronising or increase the size of a micronising facility at Collie.”
The company reports the grant was administered by the Department of Industry, Science, and Resources and was announced by the Australian Minister for Resources, Madeleine King, on 18 May 2023.
International Graphite reports the funding will be made available to the company over a 22-month period, with the first tranche of $1.7 million expected before 30 June 2023.
The CFO tells this news service that Springdale was discovered about 10 years ago by base and precious metals explorer Comet Resources (ASX:CRL).
“At the time, graphite was going through a bit of a run, but that was mainly for its industrial purposes, and it was found to be a very fine flake-grade deposit. But now that graphite is on the market again, it’s a good source of battery anode material, and the fine flake is perfect for making that battery anode material.
So, there are multiple reasons why it’s made Springdale very attractive, which is why we did the deal and picked up the project from Comet Resources.”
Also commenting on the grant, International Graphite Chief Executive Officer (CEO) and Managing Director Andrew Worland says the funds will help the company fast-track its strategy for an integrated mine-to-market graphite supply chain in Western Australia.
“There is an urgent need to expand global graphite supply, and the pressure is on for new sources to reach market as quickly as possible. With our planned mine and concentrator at the Springdale Graphite Project near Hopetoun and downstream battery anode processing facilities in Collie, we offer a unique Western Australian focused opportunity to be a pre-eminent global supplier of choice to the lithium-ion battery markets.
“We offer a unique Western Australian focused opportunity to be a pre-eminent global supplier of choice to the lithium-ion battery markets”
We are very pleased that the government recognises graphite as key to achieving decarbonisation commitment and that our business has the potential to strengthen Australia’s position as a leader in critical minerals.”
Now that the grant has been awarded to International Graphite, Hodby says the company has until February 2025 to complete the feasibility study for Springdale and integrate it into the battery anode material coming out of Collie.
“I think it’s a fantastic opportunity. There were 13 people shared in $50 million from the government, and the government obviously recognised our project as a part of this energy transition. We were successful in a very competitive bidding process.”
International Graphite is an emerging supplier of processed graphite products, including battery anode material for the global electric vehicle and renewable energy markets.
The company is developing a sovereign Australian mine-to-market capability, with integrated operations in Western Australia, including the Springdale Graphite Project and downstream graphite processing at Collie.
Write to Harry Mulholland at Mining.com.au
Images: International Graphite Ltd
