Battery metals developer Renascor Resources [ASX:RNU] has secured a site for its battery anode manufacturing facility in South Australia.
RNU shares were flat on the news but are up 20% year to date.
Fellow graphite stock Syrah Resources [ASX:SYR] was up 6% in late Tuesday trade.
Source: tradingview.com
The latest on Renascor’s BAM facility and Siviour Project
Renascor announced it has secured a site for its BAM (Battery Anode Material) manufacturing facility from state government-affiliated utility SA Water.
Renascor’s new BAM site
The lease for the ‘state-of-the-art’ facility extends 40 years at market rates, ample time to accommodate RNU’s plans to produce purified spherical graphite (PSG) products for lithium-ion batteries.
Renascor describes the site as being 20 hectares in size, 20km from the main shipping port in Port Adelaide, and within close proximity to SA Water’s Bolivar industrial assets.
Making use of the facility’s size, RNU anticipates upping its initial Stage 1 PSG production capacity (currently 28,000tpa) and future Stage 2 PSG capacity.
Siviour Project update
Renascor also updated the market on the latest for its Siviour Project operations.
RNU said that it is undergoing an optimised BAM study, intending to combine its Siviour graphite mine and concentrator (‘a conventional open-pit mine and crush, grind, flotation processing circuit’) with the Bolivar PSG production facility in South Australia’s Eyre Peninsula.
Renascor believes its Siviour Graphite mine and concentrator can deliver ‘world-class operating costs’ due to the deposit’s advantageous ‘geology and geometry’.
RNU outlook
David Christensen, Renascor’s Managing Director, offered his comments on the announcement made today:
‘We are delighted to have executed the option-to-lease with SA Water for the site for our proposed Battery Anode Material Manufacturing. It provides certainty over a key component of our plans to become a leading producer of Purified Spherical Graphite for the growing lithium-ion battery sector.
‘In securing the strategically positioned and scalable Bolivar site, Renascor will be able to leverage off the high quality of the Siviour Resource by vertically integrating the mine and concentrator with a state-of-the-art Battery Anode Material Manufacturing facility to supply responsibly produced, 100% Australian-made Purified Spherical Graphite for the lithium-ion battery industry.
‘We look forward to working with SA Water and the South Australian Government as we bring a major new industry to the State.’
Renascor has set the goal of becoming a world leader in the sustainable production of 100% Australian-made spherical graphite for the world’s EV journey.
In working towards this goal, Renascor is ploughing ahead with its BAM Study for the integrated Siviour facility and in resource expansion drilling through an agreement for an extended Siviour Inferred Resource area.
Renascor is also awaiting final approval from the South Australian Department for Energy and Mining and the Program for Environment Protection and Rehabilitation while progressing offtake negotiations with both new and existing industry partners.
Having recently received a loan facility of AU$185 million from the Australian Government, Renascor appears well supported in its Siviour Project activities.
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Regards,
Kiryll Prakapenka,
For Money Morning
