Name of the Project
Vidalia further expansion project.

Location
Louisiana, in the US.

Project Owner/s
Syrah Resources.

Project Description
A definitive feasibility study has confirmed that the expansion of Vidalia’s capacity to 45 000 t/y of active anode material (AAM) is technically viable and financially robust, with processed graphite estimated at 74 600 t/y.

The AAM facility will have the flexibility to produce an additional AAM product with differentiated electrochemical performance parameters, adding to the product the company will produce from the 11 250 t/y AAM Vidalia facility under construction, or the Vidalia initial expansion project.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The Vidalia further expansion project has an estimated pretax net present value, at 10% discount rate, of between $208-million and $794-million, and an internal rate of return of between 13.9% and 22.9%, with a payback of four to six years from the start of operations.

Capital Expenditure
The initial expansion project will cost $198-million. Total installed capital cost for the Vidalia further expansion project is estimated at $539-million.

Planned Start/End Date
Not stated.

Latest Developments
Syrah Resources is on track to start production at its expanded Vidalia AAM facility by the December quarter, subject to the completion of construction, final testing and successful commissioning.

Syrah has reported that, with construction of the initial expansion project now nearing full completion, the total capital cost estimate has been revised to $198-million.

Capital cost escalation is associated with unexpected labour-intensive construction costs to maintain the project schedule and for mechanical corrections. At the end of the quarter ended September 30, installed capital costs – excluding Syrah owner’s team costs, operational readiness costs and Department of Energy loan-related costs – of $161-million has been spent on the Vidalia initial expansion project.

Syrah is progressing transition engineering and optimisation activities, permitting and other long-lead procurement activities ahead of a final investment decision (FID) proposal on the Vidalia further expansion project to be considered by the Syrah board. 

The company is progressing operational and customer commitment activities to underpin readiness for an FID as quickly as possible. However, Syrah expects to finalise an FID only during the first half of 2024, given the need to further progress funding options appropriate to the company’s overall financial position and equity market conditions.

Detailed engineering, long-lead items and other procurement and construction activities will follow a Syrah board-approved FID sequentially.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Syrah Resources, tel +61 3 9670 7264 or email enquiries@syrahresources.com.au.