Completion of graphite scoping study looms large for Kingsland Minerals

• Scoping study work at the Leliyn project is well advanced and on track for completion this quarter
• Test work on the production of purified, spherical graphite for lithium-ion batteries is almost complete
• The company plans to carry out more drilling following the scoping study to grow resources

Special Report: Kingsland Minerals is nearing the end of a scoping study for the Leliyn graphite project about 250km south of Darwin in the Northern Territory assessing the potential for on-site mining and processing.

Work is well advanced with the study scheduled for completion this quarter.

Alongside the scoping study, testwork to produce purified, spherical graphite is also being carried out and will wrap up this quarter.

These two milestones will progress the Leliyn asset to the next phase of development and enable Kingsland Minerals (ASX:KNG) to begin a pre-feasibility study (PFS).

The scoping study, based on a 194.6Mt resource grading 7.3% total graphitic carbon (TGC), contemplates a mine and processing facility producing 94% spherical graphite concentrate, primarily used in the anodes of lithium-ion batteries.

More drilling planned to increase resources

At this stage, the size of the mine and processing facility is limited by the amount of indicated resources and with a positive scoping study result, Kingsland will carry out more drilling in a bid to expand this category.

This will provide flexibility in considering upscaling the size of the mine and/or processing plant.

Kingsland said there was significant upside to increase resources at Leliyn, with only 4.2km of 18km (23%) of strike length of the graphitic schist drilled to date and included in the resource.

The company sees strong potential for resource growth through further drilling.

Watch: KNG’s Leliyn testwork targets rutile and gallium by-products

Graphite market dynamics

Recent flake graphite pricing has been significantly impacted by Chinese production.

In February 2025 the US International Trade Commission (ITC) ruled that China harmed the American graphite industry by exporting graphite at unfairly low prices.

On July 17, the Department of Commerce in the US applied 93.5% anti-dumping duties on active anode material (processed graphite) which when combined with existing tariffs applied to Chinese imports into the US, now totals 160% for active anode material.

Active anode material is graphite refined into coated spherical purified graphite and is the final product used in batteries.

These significant tariffs into a major market like the US are expected to impact global prices of graphite.

Kingsland believes the timing of Leliyn’s development is ideal, aligning with rising demand for graphite and strengthening prices.

This article was developed in collaboration with Kingsland Minerals, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.