Renascor locks in Siviour electrical network upgrade

Graphite mine developer Renascor Resources (ASX:RNU) has signed on SA Power Networks to upgrade the electrical distribution network for the company’s Siviour mine and processing plant in South Australia.

The mine and plant form the upstream portion of Renascor’s proposed Battery Anode Material (BAM) Project in the state.

Under the agreement, SA Power Networks will upgrade an existing substation just 25km from the proposed mine and plant with the construction of a new 33-kilovolt (kV) regulator and transformer and will complete some other developments to portions of the existing overhead powerline network. 

Renascor says SA Power Networks is set to begin physical works in the June quarter of 2024, with the upgrades and construction work to take around 12 months to complete. 

The work is part of the $218.38 million market capitalisation company’s strategy to accelerate the upstream development and minimise the construction period for the Siviour mining and processing operation. 

Renascor Managing Director David Christensen says the growth of the lithium-ion battery and anode markets continues to put pressure on the graphite market to meet rising demand — hence the need for ‘large, low-cost’ graphite mines like Siviour.

“Our agreement with SA Power Networks to upgrade the existing electrical distribution network for Siviour permits us to move forward on a key critical path workstream for the project.” 

The Siviour project is in its advanced stages of development, with Renascor having already obtained primary mining approvals. 

Renascor has been awarded a Program of Environment Project and Rehabilitation, completed a Definitive Feasibility Study (DFS)-level assessment as part of its August 2023 BAM Study, and acquired the freehold land hosting the Siviour graphite deposit. 

Looking ahead, Renascor says it now plans to begin a downstream operation to produce purified spherical graphite, with its phased development plan designed to align with graphite market demand and reduce execution risk prior to investment in the downstream facility.

Further, the company says it’s in negotiations with lithium-ion battery supply chain participants regarding potential offtake deals for Siviour and equity investments to meet the BAM project’s capital requirements.

Images: Renascor Resources
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Written By Joshua Smith
Joshua Smith has years of experience in the media sector, having worked as a markets reporter, features writer, and editor since completing a Communications and Journalism degree and a Creative Writing degree. Josh is an avid board game fan and a self-professed coffee snob.