Uley graphite expansion viable - Valence
PERTH (miningweekly.com) – Graphite miner Valence Industries has completed a feasibility study into the Phase 2 expansion of its Uley graphite mine, in South Australia.
The study estimated that the Phase 2 expansion would require a capital investment of about A$37-million, over a three-year period, to increase production from the current Phase 1 level of 14 000 t/y to 50 000 t/y.
The expansion of the Uley site would provide additional processing capacity in 25 000 t/y increments of graphite output, to reach 64 000 t/y, to effectively match market demand.
Valence told shareholders that the Phase 2 plant was also designed to deliver significant advances in quality, output reliability and reduced processing costs compared with the existing Phase 1 plant.
Operating costs for the Phase 2 operations were expected to be in the range of A$400/t to A$500/t at the mine gate, and in the range of A$750/t to A$950/t free-on-board in Port Adelaide.
Based on the diversity of market regions, industry and products targeted by Valence, the weighted average sales price for the company’s flake graphite products was expected to range between A$1 669/t and A$4 774/t.
The Phase 2 project was expected to have a net present value of A$65-million and an internal rate of return of 46%.
Valence was now looking at some optimisation alternatives before starting significant construction activities. Overseas mineral treatment technologies were also being investigated for possible implementation at Uley.
Once these activities have been completed by the end of the March quarter, the company would move to secure financing and detailed project planning, allowing for construction to start.
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