TSX-V-listed Graphite One’s mining project and associated advanced materials processing facility in the US state of Alaska has been nominated as a high-priority infrastructure project (HPIP).
CEO Anthony Huston says that the HPIP designation request by Alaska Governor Michael Dunleavy is a strong signal of the strategic importance of a project like Graphite Creek, which will reduce the US’ reliance on imported graphite.
Graphite Creek is the largest known natural graphite resource in the US. The project is proposed as a vertically integrated enterprise to mine, process and manufacture high-grade graphite products primarily for electric vehicle batteries, energy storage systems, and other value-added markets.
According to a 2017 preliminary economic assessment, an estimated 44-million tonnes of graphite mineralisation at 7% carbon in graphite (Cg) would be available to be mined and, when processed at a recovery rate of 80% Cg, support a project life of 40 years producing 60 000 t/y of graphite concentrate at 95% Cg.
At full production, the manufacturing plant is expected to convert 60 000 t/y of concentrate into 41 850 t/y of coated spherical graphite and 13 500 t/y of purified graphite powders.
The US is currently 100% reliant on imports of graphite. In 2017, the country placed natural graphite on its critical minerals list.
“Designating the Graphite Creek Project as a high-priority infrastructure project will send a strong signal that the US intends to end the days of our 100% import-dependency for this increasingly critical mineral,” says Dunleavy in a nomination letter.
The HPIP programme was initiated as a means of expediting, in a manner consistent with law, the approval process for projects designated as high priority for the US by the chairperson of the White House Council on Environmental Quality. It was instituted with President Donald Trump’s signing on January 24, 2017 an executive order.
Graphite One’s stock gained 6.67%, closing at C$0.16 a share, for a market capitalisation of C$6.50-million.