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- Renascor Resources (ASX:RNU) accelerates the development of its graphite concentrate operation, a key component of its BAM graphite mine
- The company has secured primary mining approvals and is undergoing detailed engineering and design work
- The global graphite market is on the rise, driven by increased demand for lithium-ion batteries
- Renascor’s strategy aims to align with this growing demand and potential supply shortages
- Renascor is up 4.35 per cent, trading at 12 cents at 12:10 pm AEDT
Renascor Resources (ASX:RNU) is on a mission to expedite the construction of its graphite concentrate operation, a key component of its battery anode material (BAM) graphite mine and manufacturing operation.
The company has secured primary mining approvals and recently completed a definitive feasibility study (DFS) for the Siviour project, located in South Australia.
The graphite concentrate operation is in the advanced stages of its development, with Renascor having already secured essential approvals.
Current activities involve refining the process flow sheet for the mineral process plant. These changes aim to optimise high-value graphite production by reducing costs and enhancing efficiency.
Aside from process improvements, Renascor is also investing in non-process infrastructure, including a desalination facility. Geotechnical assessments have been completed for this facility, and the company is actively working on mine dewatering, road upgrades, and power connection engineering.
βThe growth of the lithium-ion battery and anode markets continues to put pressure on the graphite market to meet increasing demand,” RNU Managing Director David Christensen said.
Renascor acknowledges recent pricing fluctuations in graphite concentrates but believes this situation is not sustainable.
The company anticipate a price increase for natural graphite concentrates as utilisation rates increase in the Chinese battery industry.
Furthermore, policy initiatives like the US Inflation Reduction Act are encouraging the growth of non-Chinese graphite supply chains.
The overall market for graphite concentrates is expected to increase by about 60 per cent by 2029, potentially leading to supply deficits if new projects aren’t initiated soon.
Renascor’s strategy aims to seize the opportunity presented by this undersupply, positioning the company as an early mover in a growing market.
Renascor was up 4.35 per cent, trading at 12 cents at 12:10 pm AEDT.
