BlackEarth Minerals NL (ASX: BEM) has confirmed that it is in the final stages of completing the Feasibility Study on its Maniry Graphite Project in Madagascar, putting it on track to release the findings later this month.
As part of the study completion process, BlackEarth Managing Director Tom Revy updated officials in Madagascar on the project late last month.
The meeting with the Minister of Mines and Strategic Resources, Dr Olivier Rakotomalala, who was appointed in March this year, served to bring the Minister up to date with the Maniry Project and the potential positive impact it will have on all stakeholders in Madagascar.
Apart from future community related projects, it was explained that the study will include all the key findings in respect to Maniry’s financial and technical outlook, including geology, metallurgy, processing and marketing.
This will pave the way for BlackEarth to accelerate discussions around binding offtake contracts and secure final project development permits and approvals.
Maniry, which has a Mineral Resource of 2.58 million tonnes of contained graphite is planning to commence construction in 2024.
This timing will enable BlackEarth to capitalise on the surge in graphite demand, which is widely forecast to occur due to the huge increase in production of lithium batteries and the lack of investment in new graphite projects. This is expected to result in a supply deficit from as early as next year.
BlackEarth has a three-pronged strategy to capitalise on the expected surge in graphite demand. This will give the Company multiple sources of revenue:
• MANIRY Graphite Project – Mining and Processing Operation – Concentrate Production
o Mining graphite ore at Maniry, with the aim of producing a series of concentrate
products for downstream processing and sale to third parties
• BATTERY ANODE MATERIAL (BAM)
o Processing the concentrate fines mined at Maniry into battery anode material (BAM)
for use in lithium batteries. A scoping study is underway which will assess the viability of building a manufacturing plant to produce the spheronised and purified graphite, as required for lithium batteries, in Europe
• EXPANDABLE GRAPHITE – INDIA
o Producing expandable graphite from a portion of the coarse flake graphite
concentrates produced at Maniry, for non-battery purposes such as fire retardants and foils at BlackEarth’s Panthera processing joint venture facility in India. This plant is on track for commissioning in the March quarter of 2023. Initially it will process suitable concentrate purchased from third parties, with Maniry to supply feedstock once it is operating.
“Completion of the Maniry feasibility study will be a pivotal point for BlackEarth as it paves the way for execution of our three-pronged strategy to cash-in on the forecasted deficit of graphite production,” BlackEarth Managing Director Tom Revy said.
“Once the definitive feasibility study is finished, we will move quickly to secure binding offtake agreements which will in turn enable us to push ahead with project development.
“We have a huge opportunity to benefit from the surge in graphite demand and prices which are expected to result from the ramp up of lithium battery production.
“Maniry is the cornerstone of our strategy and completion of the feasibility study will mark the start of the next chapter in our growth.”
For further information please visit: www.blackearthminerals.com.au
