Graphite demand is only set to soar. In fact, according to Proactive Investors, “Graphite, so the thinking goes, is likely to play a central role in the greening of the global economy. That’s because graphite is a key constituent of all next generation batteries. A frequently cited statistic issued by the World Bank last year estimates that more than 50% of the demand created for new batteries is or will be for graphite. Lithium, the headline-grabber, accounts for a much more modest 4%. By weight, graphite accounts for more than 28% of an electric vehicle battery, ahead of aluminum, next, with just under 19%, and then nickel.” That’s all great news for companies such as Ceylon Graphite (TSX: CYL) (OTC: CYLYF), Tesla (NASDAQ: TSLA), Nouveau Monde (TSXV: NOU) (NYSE: NMG), Mason Graphite Inc. (TSXV: LLG) (OTCQX: MGPHF), and Syrah Resources (OTC: SYAAF).
We also have to consider that graphite demand will only accelerate with global leaders demand lower emissions. The U.S. just promised to cut emissions by up to 52%. Europe says it’ll cut emission by up to 55%. China will stop releasing CO2 in the next 40 years. In doing so, they all want millions of electric vehicles on the roads.
Look at Ceylon Graphite (TSX: CYL) OTC: CYLYF) for example.
Ceylon Graphite announced the hiring of Klaus Leiders as Chief Mining Manager. Klaus is a leading mining and mineral processing engineer and has an extensive track record of leading narrow vein and bulk ore underground and surface operations in Sri Lanka, Morocco, Tanzania, USA, Germany, Russia, Vietnam, Malaysia, Kyrgyzstan, North Korea (DPRK), China, Romania, Guyana and Dominican Republic. His experience includes graphite, gold, lead/zinc, vanadinite, hard rock, coal, lignite, and industrial minerals: talc, dolomite, limestone.
Ceylon Graphite CEO, Sasha Jacob stated, “Klaus’ experience is a great complement to Ceylon Graphite’s resources and will be very valuable as commercial production commences in the near term and the company seeks to expand production volume rapidly. His experience in engineering and constructing a graphite processing and upgrading plant will also be very beneficial as the company advances its end-product options.”
Klaus has extensive experience in Sri Lankan graphite having led the exploration, development and production of a narrow vein graphite underground mine in Melsiripura, Sri Lanka. Among his achievements he was able to increase production from 15 to 180 tonnes per month through process changes and without additional capital deployment. He was also responsible for establishing safe work conditions, built a reliable and performing work force, optimized the graphite benefication-process, transformed a batch plant into a continuously operating plant, organized a functioning Quality Control Laboratory & procedures, established export procedures and managed human resources and work safety training.
Ceylon has previously announced agreements and licensing renewals as well as new corporate leadership which allow it to recommence focus on achieving production. The first accumulation of graphite at quantity for commercial sale is expected in Q2 of 2023.
Other related developments from around the markets include:
Tesla will create up to 6,000 jobs at its first Mexican automotive factory and is considering producing batteries in the center of the country as it eyes further investment, as noted by Reuters. Mexico's government said on Tuesday Tesla had chosen the northern state of Nuevo Leon for a first Mexican factory worth more than $5 billion. "(Musk) is interested in investing more in Mexico," Mexican President Andres Manuel Lopez Obrador said, noting the two had discussed the government's plans to develop the Isthmus of Tehuantepec in southern Mexico when they talked recently.
Nouveau Monde filed the preliminary economic assessment for the Uatnan mining project located in Québec, Canada, with the securities commissions and regulatory authorities in Canada and the U.S. The PEA, conducted by engineering firms BBA Inc. and GoldMinds Geoservices Inc. according to National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”), was carried out in collaboration with Mason Graphite Inc. (“Mason Graphite”) (TSX.V: LLG, OTCQX: MGPHF) as the Uatnan Mining Project leverages the Lac Guéret deposit wholly-owned by Mason Graphite and subject to an investment agreement and option and joint venture agreement with NMG. The PEA shows strong economics for NMG’s updated operational parameters and production volumes targeting the production of approximately 500,000 tonnes of graphite concentrate per annum over a 24-year life of mine (“LOM”). The proposed Uatnan Mining Project is currently one of the largest projected natural graphite productions being developed in the world. Consistent with NMG’s vertical integration strategy, the Uatnan Mining Project’s contemplated production would serve as feedstock for battery materials advanced manufacturing, providing refining expansion opportunity, increasing potential margins, and enhancing the Company’s growth profile.
Mason Graphite Inc. in collaboration with Nouveau Monde Graphite released the results of a preliminary economic assessment, according to National Instrument 43-101 Standards of Disclosure for Mineral Projects, for a new project covering Mason Graphite’s Lac Guéret graphite deposit, the Uatnan mining project located in Québec, Canada. The PEA, conducted by engineering firms BBA Inc. and GoldMinds Geoservices Inc., shows strong economics for NMG’s updated operational parameters and production volumes targeting the production of approximately 500,000 tonnes of graphite concentrate per annum over a 24-year life of mine. The proposed Uatnan Mining Project is currently one of the largest projected natural graphite productions in the world as battery and electric vehicle manufacturers seek local alternatives for sourcing their graphite-based solutions amidst growing demand and a projected structural deficit of production as of this year as supported by Benchmark Mineral Intelligence.
Syrah Resources is restarting operations at its Balama operations in Mozambique, with production and logistics movements recommencing shortly, as noted by The Market Herald. The company announced at the end of September that operations were halted following an interruption by “illegal industrial action by a small contingent of local employees and contractors”. The company subsequently consulted with the relevant Mozambique Government authorities and concluded that the employee strike was instigated by a small group outside of a Company Level Agreement (CLA) negotiation process.
Legal Disclaimer / Except for the historical information presented herein, matters discussed in this article contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Winning Media is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. For making specific investment decisions, readers should seek their own advice. Ceylon Graphite paid three thousand five hundred dollars for advertising and marketing services to be distributed by Winning Media. Winning Media is only compensated for its services in the form of cash-based compensation. Winning Media owns ZERO shares Ceylon Graphite. Please click here for disclaimer.
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