Kookaburra Graphite Project could be first to market

Lincoln Minerals has released a revised pre-feasibility study for its Kookaburra Graphite Project 35km north of Port Lincoln in South Australia.

Described as the newest mine to market in Australia’s graphite industry after the Uley Mine in SA closed in 2017, the study proposes open-pit mining and a simple floatation process to produce a graphite concentrate for export outside of China.

The Kookaburra project aims to produce flake graphite concentrate for export to markets outside China, initially for industrial customers then after two years of operation targeting the growing electric vehicle market.

Buyers in industrial graphite markets are seeking new non-China supply sources in response to China’s graphite product export restrictions and USA supply chain mandates, according to the study released today.

“The project’s low start-up capital costs support a ‘First to Market’ strategy, achieved through a staged development approach.

“Stage 1 involves mining 75 ktpa to produce 10 ktpa of graphite concentrate, leveraging the existing Mining Lease (ML6460) approved for 35 ktpa.

“The project will scale up to produce 60 ktpa in Stage 2. The proximity to infrastructure further minimises costs and accelerates market entry.”

The study estimates total expenditure across both stages of $52.8 million, with the pre-tax payback period from construction of Stage 2 estimated at 2.2 years.

Lincoln’s CEO Jonathon Trewartha said: “We are extremely delighted with the results of our Kookaburra Graphite Project Pre-Feasibility Study, which builds on the previous study completed in 2017 and demonstrates how a two-staged development process can allow us to become Australia’s newest graphite producer and first-to-market by leveraging our high-grade graphite core which requires low capex and no pre-strip to commence production.

“This gives Lincoln a first-mover opportunity which will enhance our ability to secure longterm graphite customers – who are increasingly seeking ex-China graphite supply sources.

“Our staged approach to development will also provide the necessary cashflow to assist with funding the subsequent larger scale and longer life Stage 2 production.”

The study said graphite would be packed in containers and trucked to Port Adelaide for shipment.

Lincoln Minerals is also developing a large-scale Green Iron Project on the Eyre Peninsula in SA, which is underpinned by a recently announced 1.2 billion tonne (Bt) magnetite resource.

This envisages developing an end-to-end domestic green iron and steel supply chain, including the construction of a government endorsed 2.5 million tonne per annum (Mtpa) green steel plant.

Further reading:
Magnetite to green iron project beckons for Lincoln Minerals
2.5 Mtpa green steel project progresses in SA

Image: Lincoln Minerals