PERTH (miningweekly.com) – ASX-listed EcoGraf has inked a letter of intent with services provider GR Engineering Services for an engineering, procurement and construction contract for the development of a 20 000 t/y battery graphite facility, in Western Australia.
EcoGraf, previously known as Kibaran Resources, will spend an initial $22.8-million to develop a 5 000 t/y operation, followed by a further $49.2-million to expand production to 20 000 t/y of battery graphite.
The project is expected to generate a pre-tax net present value of $141-million and an internal rate of return of 36.6%, along with annual earnings before interest, taxes, depreciation and amortization of $35-million.
EcoGraf and GR Engineering have been working to complete pre-development activities for the battery graphite facility as EcoGraf finalizes its arrangements with the state government’s land development agency over a proposed site at the Kwinana industrial hub.