PERTH (miningweekly.com) – Testwork at the Balama graphite project, in Mozambique, has revealed that a significant improvement in total graphitic carbon could be achieved through the addition of a liberation circuit.
Owner Syrah Resources said on Thursday that the results of a 100 t pilot plant test programme, in Brazil, had produced concentrate material for the spherical test work facility in China, as well as concentrate for potential flake graphite customers for product qualification purposes.
The pilot plant work also identified further enhancements to the Balama project flow sheet that would lead to a more than 95% total graphitic carbon product being consistently produced across all size fractions.
The liberation circuit, to produce the graphitic carbon, will be added as a final step at the Balama process. The estimated capital expenditure for the liberation circuit will have no material impact on the capital forecast for the project, but operating costs could increase by some $10/t of concentrate produced.
However, Syrah pointed out that an improvement in the average graphite concentrate grade would enhance the margins of the Balama project by increasing the selling price of the product.
“We are delighted with the outstanding results of this pilot plant testwork. The addition of a simple, low-cost liberation circuit will further enhance the already robust economics of the Balama project and proposed spherical graphite facility, and represents another significant development towards achieving our goal to become the leading graphite supplier to both the traditional and the lithium ion battery market,” said Syrah MD Tolga Kumova.
A 2015 feasibility study estimated that the Balama project would require capital investment of about $138-million to deliver a 380 000 t/y operation. During the first ten years of operation, the mine was expected to produce at an average rate of 365 000 t/y graphite concentrate and deliver a free cash flow of $160-million a year.