Renascor kicks off long lead time procurement for Siviour graphite project

Renascor Resources has commenced the procurement of long-lead time items for its proposed Siviour mine and concentrator, the upstream portion of the company’s planned vertically integrated Battery Anode Material (BAM) graphite mine and manufacturing operation in South Australia. 

The SA Power Networks has been commissioned to upgrade the existing electrical infrastructure to permit the proposed mine and concentrator to connect with the electricity grid.

In addition, the company has started tendering for Early Contractor Involvement (ECI) for front-end engineering design to permit procurement of long-lead time items relating to the processing plant and other enabling works.

Accelerated upstream development the key

This early commencement of long-lead time procurement is part of Renascor Resources’ (ASX:RNU) response to forecast near-term shortages of graphite concentrates.

“Recent investments in lithium-ion battery cell and anode manufacturing capacity have not been met by corresponding start-ups of upstream mining operations, leading to the potential for near-term shortages in the supply of graphite concentrates,” MD David Christensen said.

“The early commencement of long lead-time procurement is part of Renascor’s strategy to accelerate our upstream development as we help to fill potential supply gaps and establish Renascor as a long-term supplier of high-quality, 100% Australian-made graphite for the lithium-ion battery sector.”

BAM study expected in July

Renascor is currently in the advanced stages of an updated and optimised BAM study which is assessing an increase in Stage 1 Purified Spherical Graphite (PSG) production capacity, as well as additional staged expansions of PSG operations, and will reflect the accelerated commencement of construction and operation of the Siviour mine and concentrator.

The company expects to complete the BAM study in July 2023, with a final investment decision targeted later this year.

This article was developed in collaboration with Renascor Resources, 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.