PERTH (mningweekly.com) – ASX-listed Renascor Resources has signed its first offtake memorandum of understanding (MoU) over its Siviour graphite project, in South Australia.
The MoU, with China’s Qingdao Chenyang Graphite, would see Renascor supply graphite concentrate from Siviour in accordance with its proposed stage development.
During Stage 1 of the operation, Renascor would supply up to 10 000 t/y of graphite concentrate to Chengyang, from the 22 800 t/y output. In Stage 2, Renascor’s annual production would increase to 156 000 t/y, with the offtake agreement increasing to 30 000 t/y.
Renascor said on Thursday that the MoU also contemplated cooperation between the two companies to establish pilot plant production at Chengyang’s facilities, as well as collaboration for the supply of advanced products from Siviour graphite.
“Aligning with Chengyang is an important first step in developing the Siviour resource. Renascor plans to ensure that strong relationships are formed and maintained as we fast-track Siviour to full production,” said Renascor MD David Christensen.
A prefeasibility study into Siviour has estimated that the project could deliver some 117 000 t/y of graphite over a 30-year mine life.
The staged development option would require an initial capital investment of $29-million, with the Stage 2 development expected to cost a further $91-million.