ASX-listed Sarytogan Graphite finds in a definitive feasibility study (DFS) on the Upstream Sarytogan graphite project, in Kazakhstan, the potential to produce 50 000 t/y of graphite concentrate in varying sizes.

The company plans to have 20 000 t/y classified into three sizes up 15 microns for drilling fluids, lubricants and friction products, 10 000 t/y of unclassified concentrate for the foundry and iron recarburiser market and 20 000 t/y for a planned downstream graphite business to make ultrahigh-purity fines and coated spherical purified graphite products.

Key financial metrics for the project - only including the 'upstream' production and not the downstream graphite business - include a before-tax net present value (NPV) of $132-million or A$189-million, an internal rate of return of 19.8% and total capital expenditure (capex) of $80.5-million, based on an average selling price of $805/t.

Sarytogan advises that significant additional financial returns may be generated from the downstream project to supply the advanced battery market.

A prior 2024 feasibility study on the Upstream project contemplated the incremental downstream project has a before-tax NPV of $367-million, or A$524-million, for an additional $194-million of capex.

The company continues with product testing and customer qualification processes, with a DFS due to start soon on the downstream project.

"The upstream DFS, informed by high-quality technical studies by international and local engineering experts, advances and derisks the project development pathway for the Sarytogan graphite project. Sarytogan’s position as one of the largest, highest-grade, and lowest-cost graphite developments outside of China, is reaffirmed.

"The upstream plant construction solution using Chinese engineering, procurement and construction contractors further derisks the expenditure and execution timetable. The next steps now include a DFS on the downstream project, further environmental and social studies for international banks, ongoing exciting battery and other end-user product testing, and offtake discussions," concludes Sarytogan MD Sean Gregory.