Multi-element explorer Renascor Resources (ASX:RNU) has signed a strategic cooperation memorandum of understanding (MOU) with Japanese anode material manufacturer Mitsubishi Chemical Corporation (TYO:4188).
Renascor, which has a $495.18 million market capitalisation, says the non-binding MOU has been signed for the potential purchase by Mitsubishi Chemical of graphite concentrates, purified spherical graphite, and other graphite products from Renascor’s Siviour Graphite and Battery Anode Material (BAM) projects in South Australia.
This partnership comes ahead of Renascor Resources Managing Director David Christensen’s presentation at the Noosa Mining Investor Conference, which is being held from today (19 July 2023) to Friday (21 July 2023). Christensen is scheduled to conduct his presentation on day 2 of the conference.
Renascor reports the Mitsubishi agreement provides a framework for both parties to work together and develop a commercial partnership in order to facilitate the development of the BAM project.
The company believes this partnership compliments its product offtake workstreams, which are ’well progressed’ and include a non-binding strategic cooperation and offtake agreement with South Korean conglomerate POSCO (KRX:005490).
As a result, both parties have agreed to undertake further product validation testwork and negotiations to determine potential contract delivery terms and a commercial partnership.
Renascor notes this partnership comes as the company is in the advanced stages of an updated and optimised project study, which is assessing an increase in purified spherical graphite production capacity, as well as additional staged expansion of PSG operations, which reflect the accelerated start of construction and operation of the Siviour Mine and Concentrator.
Following approval from the South Australian Department of Energy and Mining for a Program for Environment Protection and Rehabilitation (PEPR), the mine is expected to begin producing graphite concentrates prior to the production of PSG following the planned start of the BAM operation.
Speaking on the cooperation agreement, Renascor Resources Managing Director David Christensen says: “We are delighted to be working with Mitsubishi Chemical, one of the world’s leading anode manufacturers, with an established track record of supplying high-quality anodes to the lithium-ion battery sector.
“we will continue to align Renascor with leading anode companies seeking high-quality graphite concentrates and purified spherical graphite”
As we move forward to the completion of our optimised Battery Anode Material Study and our transition into the construction phase, we will continue to align Renascor with leading anode companies seeking high-quality graphite concentrates and purified spherical graphite. Our agreement with Mitsubishi Chemical is a further significant step toward Renascor constructing, in Australia, the first integrated, in-country mine and purified spherical graphite operation outside of China.”
Renascor Resources is an Australian-based developer focused on developing its Siviour Graphite Project as well as the exploration of graphite, copper, gold, uranium, and other minerals.
The company’s BAM project is located in proximity to Port Adelaide in South Australia and is the location where the company will manufacture purified spherical graphite using an eco-friendly processing method before being exported to lithium-ion battery anode manufacturers.
Mitsubishi Chemical is a Tokyo-based anode material manufacturer that represents the largest chemical corporation in Japan as well as one of the world’s largest producers of lithium-ion battery anode materials.
Write to Adam Drought at Mining.com.au
Images: Renascor Resources Ltd
