Talga confirms Swedish graphite potential

Australia-based Talga Resources has confirmed the potential for its Vittanga project in northern Sweden to produce high-grade graphite for the emerging European battery supply chain.

A completed pre-feasibility study supports the case for a staged development producing purified, shaped and coated lithium-ion graphite anode material for an initial period of 22 years, based on an ore reserve of 1.9mn t grading 23.5pc total graphitic carbon. The project's mineral resource is estimated at 10.7mn t grading 25.7pc total graphitic carbon.

The first stage of the project is expected to cost $27mn and will focus on third-party processing to produce 2,500 t/yr of proprietary Talnode-C graphite product. Stage two will require capital expenditure of $147mn to increase output to 19,000 t/yr, producing estimated revenue of $210 mn/yr.

Talga's vertically integrated mine to anode strategy is based on estimated production costs of $1,852/t and an estimated average price of $11,250/t. Vittanga's net present value is estimated at $1.05bn with a payback period of 1½ years once the second stage has been fully commissioned.

The next step for the project is a definitive feasibility study so discussions can be had with potential customers and project partners. Talga aims to start building the project in mid-2020 with first production expected in early 2021.