In response to continued increased demand for its high-quality flake graphite, specialist graphite producer Tirupati Graphite will increase the capacity of the first module at its Vatomina project, in Madagascar, by 50% to about 9 000 t/y, which will result in an increase in near-term cash flows from operations.
The company notes increased demand from current customers, including a London-listed FTSE 250 company recognised as a global benchmark flake graphite user, and interest from new target buyers globally, which it says highlight the strong graphite market dynamics.
Tirupati says its modular development approach, using internal expertise, provides flexibility to enable the upscaling of Vatomina, while remaining on track for the project’s planned commissioning in the second quarter of this year.
Upscaling Vatomina’s first module by 50% from the planned 6 000 t/y capacity to 9 000 t/y will be done at an estimated 30% additional capital expenditure, bringing the total production capacity in Madagascar to 12 000 t/y following commissioning.
Upscaling Vatomina’s capacity will see total earthworks at Tirupati’s projects increase to 800 000 t/y from the current 200 000 t/y.
“We are already starting to see the fruits of our continued efforts to become a significant supplier to the rapidly growing global flake graphite market, which is being substantially driven by the growth in green applications including electric vehicles, thermal management and flame retardants.
Flake graphite prices, and particularly in the larger flake sizes, have seen an uplift over the past quarter and we have received strong demand from our current and prospective buyers from diverse market segments,” says Tirupati CEO Shishir Poddar.
He notes that the upscaled capacity will boost the company’s near-term cash flow generation, which further enhances shareholder value at minimal costs.