Applied Graphite Technology eyes US $ 500mn by upgrading unprocessed graphite in SL

Vancouver-based Applied Graphite Technology (AGT) Corporation is eyeing a US $ 500 million annual sales revenue by upgrading unprocessed graphite in Sri Lanka to battery-quality graphite, through a processing facility.
The company recently purchased the past-producing Queen’s Mine in Sri Lanka. Queen’s Mine is located between AGT’s two Dodangaslanda graphite properties and it is set to be amalgamated into the Queens Mine Complex.
The company is investing around US $ 650,000 for the exploration programme on the Dodangaslanda Graphite Project, according to the stock filings on the Toronto Stock Exchange. Further, investments are expected to be made into exploration activities in the recently acquired Queen’s Mine. 
According to the growth plan, the company plans to produce high-grade vein graphite material five to 15 tonnes per day (tdy), starting from the 2024-2025 period. Thereafter, it plans to double the production to 15-30 tdy in the 2025-2026 period, through mine expansion and project acquisition, with further plans to expand production to over 50 tdy in the 2026-2027 period. The company expects over 20,000 tonnes of high-grade vein graphite per annum to attract the attention of the original equipment manufacturers (OEMs).

Accordingly, AGT plans to develop a 50,000 tpy processing facility and the OEM offtake agreement is to meet the sales revenue potential of US $ 500 million. 
“Upgrading unprocessed graphite to battery-quality graphite increases the selling price from approximately US $ 2,000 per tonne to US $ 10,000 per tonne,” it noted. 
The company plans to secure a mining permit within a six-month period, betting on the expected single window approval process. 
“This will make the application and renewal of licences much quicker and easier. When a licence application is made to the Geological Survey and Mines Bureau (GSMB), the GSMB will be active in getting the numerous clearances necessary for the issuance of any mineral licence,” it added. 
Queens Mine Complex, which includes D1, Q2 and Queens Mine, is located in the best graphite area in Sri Lanka, near three producing mines.
This vein graphite has a high grade of, over 95 percent, carbon content in the ground, with a higher degree of crystallinity than flake graphite, which translates into excellent electrochemical properties for lithium-ion batteries. AGT is focused on building a green battery company by moving ahead with natural vein graphite projects in Sri Lanka.
The demand for battery-ready graphite is forecasted to reach five million tonnes per annum by 2030, according to Benchmark Mineral Intelligence.  (NF)