- Renascor Resources (ASX:RNU) is making adjustments to its graphite production approach for the Siviour mine, a crucial component of its BAM project in SA
- The company has reevaluated the projected product mix to enhance revenue opportunities during the initial production phase
- The revision involves optimising the flowsheet parameters of the Siviour processing plant, with a focus on increasing the production of coarse flake graphite
- The company’s efforts include not only adjusting production parameters but also fast-tracking the development of phase one graphite production
- RNU last traded at 9.3 cents
Renascor Resources (ASX:RNU) is making adjustments to its graphite production approach for the Siviour mine, a crucial component of its battery anode material (BAM) project in South Australia.
The company has reevaluated the projected product mix to enhance revenue opportunities during the initial production phase.
The revision involves optimising the flowsheet parameters of the Siviour processing plant, with a focus on increasing the production of coarse flake graphite.
Renascor aims to boost the output of size fractions greater than 150 microns (+100 mesh) by approximately 60 per cent, shifting from a projected 17 per cent to 27 per cent of total production.
This adjustment aligns with Renascor’s strategy to tap into high-value industrial markets during the early stages of production. Coarser flake graphite generally commands a premium, and Renascor intends to leverage this to its advantage.
“The revisions to the flowsheet parameters announced today are part of our strategy to optimise and accelerate the production of graphite from our Siviour project in alignment with projected near-term shortages in supply,” RNU Managing Director David Christensen said.
The company’s efforts include not only adjusting production parameters but also fast-tracking the development of phase one graphite production.
This involves securing freehold land, advancing engineering and procurement activities, and engaging in discussions with potential partners for offtake terms and potential equity investments.
The graphite market is witnessing significant growth, primarily driven by increased demand for graphite in lithium-ion battery anodes. The company anticipates potential shortages in graphite supply by 2025, making its strategic moves crucial in meeting future market demands.
RNU last traded at 9.5 cents.