PERTH (miningweekly.com) – The South Australian government has confirmed the Siviour graphite mine’s re-classification as a “new mine”, meaning owner Renascor Resources would be able to reduce the royalty rate of the project to 2% of the net value of the minerals recovered through to June 2026.
The new royalty rate was down from the 3.5% over the initial years of production.
“Renascor is delighted to receive confirmation of Siviour’s “new mine” status and the consequential reduction in the royalty rate applicable to the project. This outcome further underlines Siviour’s strategy of being among the world’s lowest cost producers of purified spherical graphite,” said Renascor MD David Christensen.
“Renascor has enjoyed a strong level of support from the South Australian government, which recognises the substantial value-add that the world-class, world-scale Siviour purified spherical graphite production facility brings to South Australia.”
The Siviour project is on track to become Australia’s first vertically integrated purified spherical graphite production facility.
The A$118-million project is based on a staged development, with an initial production of 80 000 t/y during the first four years of operation. The project would be expanded to 144 000 t/y from year five onward, with the A$77-million expansion to be funded from project cash flows.
Over the 40-year mine life, the Siviour project is expected to produce 105 000 t/y.