Sovereign Metals Ltd confirmed on Thursday that graphite from its Kasiya rutile-graphite project had performed well in early independent testing, leaving the company well-positioned for discussions with graphite off-takers.
The Malawi-focused mining company said its graphite showed high oxidation resistance during initial tests carried out in Germany by independent consultancy ProGraphite GmbH. The product’s oxidation rate was 1.6% per hour at 650 degrees Celsius, a ‘very low’ figure according to Sovereign, with no oxidation below 400C. Mass loss was 6.4% after 4 hours at 650C.
The combination of oxidation resistance, low sulphur rates and large flake size make Kasiya suitable for use in the refractory materials sector, which involves high furnace temperatures, and accounts for 24% of global graphite demand. Previous testing indicated Kasiya graphite could also be used for battery production.
Chief Executive Officer Frank Eagar said the testwork affirmed Kasiya’s ‘premium quality’ and that the project’s low operating costs and low greenhouse gas emissions gave it ‘significant advantages over its graphite peers as a long-term secure source of supply’.
Sovereign also implied Kasiya offers an alternative to graphite derived from China, which currently mines 75% of flake graphite and 96% of spherical graphite used globally, according to Benchmark Mineral Intelligence. China announced in November it will introduce further export restrictions on ‘dual-use’ technologies and items, including graphite and titanium alloys, effective in December.
Sovereign said testwork is still underway and will be key to ‘ongoing and future discussions’ with potential buyers. The company has not specified an end date for the test phase, but maintained the Kasiya project ‘aims to become the world’s largest producer of high-grade titanium feedstock’ in the form of rutile and graphite.
Sovereign shares closed up 5.9% at 41.30 pence on Thursday in London.
Copyright 2024 Alliance News Ltd. All Rights Reserved.
