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Talga's Swedish anode project proves a winner

1st July 2021

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – A definitive feasibility study (DFS) into the Vittangi anode project, in Sweden, has confirmed its potential to supply globally competitive green graphite anode, ASX-listed Talga said on Thursday.

The DFS was based on a virtually integrated mine-to-anode operation, with the project producing 19 500 t/y of anode from 100 000 t/y of Vittangi graphite, over a mine life of 24 years.

The study estimated that the project would require a capital investment of $484-million, along with a $44-million contingency, and would deliver revenues of $5.3-billion over the mine life, along with earnings before interest, taxes, depreciation and amortization of over $4-billion.

The DFS has estimated a net present value of $1.05-billion and a pretax internal rate of return of 30%, with a payback period of 2.5 years.

Talga on Thursday told shareholders that capital expenditure for the project was up from the $174-million estimated in the 2019 prefeasibility study, owing to the incorporation of $153-million additional anode production equipment and process, to satisfy the updated battery requirements of Talga’s Tier 1 automotive customers.

A further $72-million in additional infrastructure was also included to facilitate substantial growth opportunities identified in a 2020 scoping study into the mining of the Niska South, Niska North and Nunasvaara North graphite deposits at the Vittangi project.  

“We are delighted to deliver the Vittangi anode project DFS to the market and our partners. The study is the culmination of extensive work undertaken by Worley and confirms the robust economics of the project,” said Talga MD Mark Thompson.

“As part of the study, we have upgraded the equipment and process in response to our Tier 1 automotive customer battery targets and extended the project life to 24 years with significant additional reserves. This is a sound base from which to commence Swedish battery anode operations while exploring further growth potential.”

Thompson noted that the DFS provided Talga with a strong platform to secure project financing and development partners, complete customer agreements and to start construction.

The company is engaging with potential development partners, with the aim of starting mining in 2023, while commercial anode production is targeted for 2024.

Edited by Creamer Media Reporter

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