PERTH (miningweekly.com) – A prefeasibility study (PFS) into the Vittangi graphite project, in Sweden, has estimated that it could support a mine life of some 22 years.
ASX-listed Talga Resources on Thursday reported that the PFS, based on an ore reserve of 1.9-million tonnes, grading 23.5% total graphite content, could produce some 19 000 t/y of Talnode-C product, a fully engineered and coated lithium-ion graphite battery anode product, through an integrated concentrator and refinery.
The Stage 1 project, with a planned output of 5 000 t/y, would require a capital investment of $27-million and will have a two-year project life based on the trial mining of some 25 000 t of ore processed through a toll processing and early-stage refinery operation.
The Stage 1 operation would start in 2020, with initial production slated for early 2021.
The Stage 2 operation would require a further investment of $147-million, increasing production to 19 000 t/y, with commissioning proposed in 2023.
The enlarged project is expected to generate life-of-mine revenues of more than $4-billion, and earnings before interest, taxes, depreciation and amortisation of $3.2-billion. The PFS also estimated a pre-tax net present value of over $1-billion and an internal rate of return of 55%.
“The outcomes of the PFS support Talga’s move to produce fully value-added graphite products for lithium-ion batteries. This is the most immediate path to significant revenue for Talga and aligns with our vertically integrated business that sets us apart from peers,” said Talga MD Mark Thompson.
“Next steps include a Stage 1 definitive feasibility study to further optimise scale, in line with growing lithium-ion battery anode demand, and progress discussions with customers and potential strategic partners towards the targeted 2020 commencement of Stage 1.”