There was a hefty devaluation for Renascor’s [ASX:RNU] share price early on Monday morning (28/11/2022) when the graphite and commodities miner suffered a more than 9% discount to its share price.
RNU announced PEPR approval for developing the Siviour Battery Anode Material Project, which will allow the miner to process up to 1.65 million tonnes a year — translating to 150,000 tonnes of graphite concentrates annually.
Even with its sliding share price today, RNU is up 100% year to date, more than 33% in the last month, and has overtaken its sector average by 129%:
Source: Tradingview.com
Renascor attains PEPR approval for Siviour
Following a gruelling process of stakeholder consultations, expert audits, comprehensive studies, designs, management plans, and conditional compliance, Renascor revealed the South Australian Department of Energy and Mining (DEM) had bestowed its approval for Renascor to join the Program for Environment Protection and Rehabilitation (PEPR).
The PEPR covers RNU’s proposed Siviour Mine and Concentrator, a high-grade open-pit mine planned to be developed in the Eyre Peninsula.
Renascor can now process up to 1.65 million tonnes per year, equating to 150,000 tonnes of graphite concentrates.
It also represents a forefront condition for receiving the Australian Government’s $185 million loan facility, part of the government’s $2 billion Critical Minerals Facility initiative.
This is the second step in a two-stage assessment process and clears the way for RNU to develop its upstream Graphite Mine and Concentrator, an integral part of the overall Siviour Battery Anode Material Project.
Now that the processes have been completed in line with conditions outlined in its lease granted in 2019, the Siviour Battery Anode Material Project is coming closer to becoming the vertically integrated battery anode material manufacturing operation located wholly within South Australia.
South Australian legislation involves a two-part assessment and approval process for mining operations.
Step one is the Mineral Lease and step two is the approval of a PEPR — both of which must be satisfied before operations may begin.
Renascor’s Managing Director David Christensen commented:
‘Obtaining PEPR approval brings Renascor another key step closer to becoming a producer of 100% Australian-made Purified Spherical Graphite. This approval is the culmination of extensive technical, environmental and social investigation over the last 6 years, and satisfies a fundamental condition precedent of the Australian Government’s A$185 million loan facility to fund Renascor’s integrated Siviour Battery Anode Material Project.
‘The timing of the PEPR approval is especially opportune for the Siviour Project, as there is growing potential for substantial upstream bottlenecks in the graphite-anode-battery supply chain due in large part to the lengthier approval process associated with new graphite mining operations relative to rapidly growing anode capacity. With this important regulatory milestone now achieved, Renascor is well poised to rapidly advance through the final development stages, into construction and operation of an important new supply line for the lithium-ion battery industry.’
Source: RNU
Renascor intends to integrate the Siviour Graphite Mine and Concentrator operation with its planned downstream Battery Anode Material (BAM) manufacturing facility.
This will enable graphite concentrates from the Siviour mining and concentrator operation to produce Purified Spherical Graphite (PSG) for lithium-ion battery anodes.
At present, the graphite miner is working on an updated and optimised BAM study, assessing the previous proposal of 28,000tpa (annual tonnes) production capacity and expansions to meet PSG demand.
Resource expansion drilling at the Siviour Project area is already underway.
The miner is also looking into securing PSG offtake agreements with both new and existing partners for future business deals.
A new resources boom?
Have you noticed how high demand, rising prices, and supply woes exacerbated by the war in Ukraine have turned energy into a hot topic?
It’s also a topic of acute importance.
The thing is the rising cost of energy is only part of a wider story.
Our resident commodities specialist James Cooper has the rest of it — he’s convinced another multiyear boom in commodities is coming.
And Australia and ASX stocks stand to benefit.
To access James’s mammoth report on the topic and get the plan of attack, click here.
Regards,
Mahlia Stewart,
For Money Morning
