EcoGraf secures supply deal for WA graphite project
Friday, April 10th, 2020
Ecograf has signed an agreement with Germany’s Technografit for the supply of natural flake graphite feedstock for its proposed battery graphite manufacturing facility in Western Australia.
The company is proposing to produce spherical graphite using a new eco-friendly process at its 20,000 tonne per annum battery graphite purification facility in Kwinana, Western Australia – the first of its kind to be constructed outside of China.
Under the agreement, Technografit – a leader in trading mineral raw materials, graphite sales and distribution in Europe – will supply graphite concentrate feedstock from a range of pre-qualified sources for the phased EcoGraf spherical graphite development.
The initial term of the agreement is five years, with the potential for renewal for additional five years by mutual agreement.
Ecograf’s tonnage requirements is currently up to 10,000 tonnes, but is expected to increase to 40,000 tonnes by 2023.
Technografit will provide assistance to EcoGraf with battery graphite sales, product development programs with prospective customers, as well as sales of by-product fines into higher value carbon markets.
EcoGraf said the deal is expected to become binding by the end of June.
EcoGraf managing director Andrew Spinks said finalising the feedstock supply arrangements was significant milestone in developing a battery graphite purification facility in Perth’s south.
Australian government agency Export Finance Australia recently confirmed it would consider providing debt finance for EcoGraf’s new US$72 million (AUD$117 million) development, subject to completing a detailed assessment of the project.
A detailed financial model has been prepared for the Kwinana process that incorporates proposed terms for a US$35 million (AU$57 million) debt funding package, representing about half of the total construction cost.
Formerly known as Kibaran Resources, Ecograf is a vertically integrated graphite production business with offices in both Perth and Untergriesbach, Germany.
On top of developing its processing facility in Western Australia, the company is also progressing its Epanko Graphite project in Tanzania to source natural flake graphite for its production purposes.
The project is forecast to produce 60,000 tonnes of natural flake graphite products each year and during its initial 18 years of operation.https://www.australianmining.com.au/news/ecograf-secures-graphite-supply-deal-for-wa-manufacturing-plant/