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BlackEarth looks at downstream possibilities

7th September 2022

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – Junior BlackEarth Minerals is weighing downstream opportunities at its Maniry graphite project, in Madagascar.

The company has started a scoping study to build a battery anode material (BAM) plant to process graphite from the Maniry project into a product suitable for use in lithium batteries.

The scoping study would assess the viability of building the plant in Europe, where the company said the demand for BAM is forecast to soar over the coming years.

“We believe there is an exceptional opportunity to become a vital supplier to the lithium battery industry by processing Maniry fines into BAM,” BlackEarth MD Tom Revy said.

“This would allow us to sell a portion of our fines for around four times the price we would realise by selling them as a raw product to others to process into BAM. By becoming vertically integrated in this manner, we stand to substantially increase our revenues, margins and free cashflow while becoming an integral part of the booming lithium battery industry in Europe.

“The BAM strategy is designed to provide valuable income diversity and increased overall financial returns from Maniry. At the same time, we will proceed as planned with our strategy to process our coarse graphite via our joint venture in India for sale of expandable graphite into Europe next year,” said Revy.

Meanwhile, the definitive feasibility study for the Maniry project is due for completion in October this year.

Edited by Creamer Media Reporter

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