PERTH (miningweekly.com) – ASX-listed Renascor Resources has entered into a strategic partnership agreement with contractor Royal IHC Australia to accelerate the development of the Siviour graphite project, in South Australia.
Renascor told shareholders on Monday that the strategic partnership agreement was the first step in what was set to be a long and mutually-beneficial relationship, leading to project financing and the completion of the Siviour project under an engineering, procurement and construction contract.
“This is an innovative partnership that we expect will accelerate the development of the Siviour graphite project towards production,” said Renascor MD David Christensen.
“Royal IHC have demonstrated their strong belief in Siviour by contributing A$1-million to undertake early works thereby ensuring we can continue to rapidly advance the definitive feasibility study (DFS).”
Under the terms of the agreement, Royal ICH will establish an integrated team to deliver the DFS, and has committed A$1-million to undertaking early project works, including metallurgical testing and detailed engineering and design work.
A prefeasibility study into Siviour has estimated that the project could deliver some 117 000 t/y of graphite over a 30-year mine life.
Renascor is considering a staged development of the Siviour project, with Stage 1 of the operation producing 22 800 t/y of graphite concentrate. In Stage 2, Renascor’s yearly production would increase to 156 000 t.
The staged development option would require an initial capital investment of $29-million, with the Stage 2 development expected to cost a further $91-million.