Siviour DFS due this quarter

CBC Metal Time:Oct 08, 2019 16:30 Source:miningweekly

A definitive feasibility study (DFS) for the Siviour graphite project, in South Australia, is due shortly, with developer Renascor Resources targeting first graphite by the second half of 2021.

The DFS for Siviour is based on an optimised development plan which looked at increasing the 22 800 t/y Stage 1 production nearly four fold to 83 400 t/y, while providing for the construction of a similar sized processing plant in Stage 2 for a combined production rate of 145 000 t/y of graphite concentrate.

“Our work to date indicates that Siviour’s favourable geology and location will permit us to produce high quality graphite concentrates at amongst the lowest cost of any graphite development globally,” MD David Christensen said on Tuesday.

He told Mining Weekly Online that early indications from the DFS showed that operating cost would likely be less than $400/t.

“We believe that this cost advantage, coupled with our location in the low sovereign risk jurisdiction of South Australia, will enable Siviour to become a premier provider of graphite for the growing lithium-ion battery sector and, importantly, to achieve consistently attractive profit margins even under the current lower graphite price environment.”

Christensen told Mining Weekly Online that the completion of the DFS would assist Renascor in completing financing negotiations.

The company currently has an in-principle agreement from the Dutch export credit agency (ECA) Atradius Dutch State Business for up to 60% of the projected capital expenditure for the Stage 1 operation, while the remaining 40% of the capital costs for the Siviour project would be funded either through equity from existing shareholders, or a strategic investor.

Christensen also raised the possibility of a partner for its proposed downstream spherical graphite project, near Siviour.

A previously completed prefeasibility study into the spherical operation estimated that a capital injection of A$89.9-million would be required, with the downstream project expected to deliver 117 000 t/y of graphite concentrate over a mine life of 30 years. Some 61 500 t/y of the annual graphite concentrate production would be processed into around 29 085 t/y of spherical graphite.

“It would be absolutely spectacular for Australia and South Australia if we could do downstream manufacturing here. The largest single component cost in producing the spherical product is the actual graphite concentrate itself. So if we are able to have an advantage by producing low cost feedstock, that gives us an advantage in producing the spherical product.” 

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