- Renascor Resources’ (RNU) Siviour Graphite Project has been classified as a ‘New Mine’ by the South Australian Government Treasury
- The company’s Siviour project has been reclassified for the purposes of State royalty calculations
- This reduces the project’s royalty rate to 2 per cent of the net value of minerals recovered from the Siviour Mine until June 30, 2026
- The project’s previous royalty rate on minerals produced at Siviour totalled 3.5 per cent of the net value
- Renascor Resources is up 10 per cent and trading at 4.4 cents per share
Renascor Resources’ (RNU) Siviour Graphite Project has been classified as a ‘New Mine’ by the South Australian Government Treasury.
The Siviour Graphite Project is 100 per cent-owned by Renascor and on track to become the first vertically integrated purified spherical graphite (PSG) production facility in Australia. It has the largest reported graphite ore reserve outside of Africa, which Renascor intends to convert into a low-cost PSG supply.
In particular, the company hopes to supply material from the Siviour project for the green energy industry, including the production of electric vehicle batteries and off-grid power storage.
South Australia’s Treasury has confirmed the reclassification of the project for the purposes of State royalty calculations. This will result in the project’s current royalty rate being reduced to just 2 per cent of the net value of minerals recovered from the Siviour Mine.
In its 2018 State Budget, South Australia discontinued reduced royalties for New Mines from July 1, 2020. In spite of this, Siviour’s classification as a New Mine entitles the project to a reduced royalty rate through to June 30, 2026.
The project’s previous royalty rate on minerals produced at Siviour totalled 3.5 per cent of the net value.
Renascor’s Managing Director, David Christensen, said that the company is delighted to receive confirmation of Siviour’s ‘New Mine’ status and welcomes the resulting reduction in the royalty rate.
“Renascor has enjoyed a strong level of support from the South Australian Government, which recognises the substantial value-add that the world-class, world-scale Siviour purified spherical graphite production facility brings to South Australia,” he said.
“We would like to thank the South Australian Government for their ongoing support as we move quickly towards bringing the Siviour Project to realisation,” he added.
Renascor Resources is up 10 per cent, trading at 4.4 cents per share at 11:51 am AEDT.