Sovereign Metals could be spoilt for choice with its Kasiya graphite now found to be suitable for traditional refractory and foundry applications. Pic: Getty Images
Mining
Special Report: Preliminary results from initial test work on graphite concentrate sourced from Sovereign Metals’ Kasiya rutile-graphite project in Malawi has confirmed it is suitable for traditional refractory and foundry applications.
Refractory materials production accounts for 24% of global graphite demand and requires large flake graphite with high oxidation resistance.
Sovereign Metals’ (ASX:SVM) initial independent testing found that Kasiya coarse flake concentrate exhibits high oxidation resistance with no oxidation below 400 degrees celsius, only 6.4% mass loss after fours at 650 degrees celsius, and very low oxidation rate of 1.6% per hour at the same temperature.
It adds to previous testwork that had already confirmed the suitability of Kasiya graphite for the production of battery anode material, with its coated spherical purified graphite (CSPG) found to be comparable to CSPG sourced from leading Chinese natural graphite anode materials manufacturers such as BTR New Material Group.
With Kasiya hosting a massive resource of 1.8Bt at 1% rutile and 1.4% graphite, and >50% of that graphite being large flakes, the results are hugely promising especially since China is reportedly planning to further restrict exports of graphite and titanium alloys that have civilian and military applications in December 2024.
This outlines the strategic nature of the Kasiya project and presents massive opportunities as China currently produces 75% of the world’s flake graphite and 96% of spherical graphite used in battery anodes, according to Benchmark Mineral Intelligence.
Said potential has been recognised by Rio Tinto (ASX:RIO), which had increased its stake in the company from 19.76% to 19.9% in September 2024.
“These initial test results for traditional graphite applications are very promising. High resistance to oxidation and low levels of sulphur are two key attributes required to produce a premium graphite product for traditional refractory and foundry applications,” managing director Frank Eagar said.
“Combining these attributes with the > 50% large flakes of the Kasiya resource provides Sovereign with multiple marketing options.
“Our evaluation of coarse Kasiya concentrate for traditional applications will continue in the coming months, complementing the optimisation work on the fine fraction for anode materials, where we have also had excellent initial results.
“Keeping in mind that graphite is a co-product for Kasiya, when combining these excellent results with one of the largest graphite resources globally, industry-low operating costs and lowest industry comparable greenhouse gas emissions, Kasiya presents significant advantages over its graphite peers as a long-term secure source of supply.”
Characterisation of the concentrate samples tested by the independent laboratory found high fixed carbon and low levels of volatiles, which confirmed prior results regarding the purity of Kasiya flake graphite.
The confirmation of high oxidation resistance is critical as refractory bricks are exposed to high furnace temperatures.
Adding to the suitability of Kasiya graphite for refractory applications is its very low levels of sulphur impurities.
In the steel industry, natural graphite is used as a component in bricks that line both blast and electric arc furnaces as well as a liner for ladles and crucibles.
Other traditional uses of graphite include brake linings, gaskets and clutch materials in the automotive sector, along with use in lubricants, carbon brushes for electric motors, fire retardants, and insulation and reinforcement products.
Additional evaluation of Kasiya coarse flake for traditional and expandable applications is underway with results expected in the coming months.
This will complement the optimisation program for anode materials, granting SVM with optionality over offtake discussions and future supply chains to maximise revenues from the project.
This article was developed in collaboration with Sovereign Metals, 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.
