Vatomina Graphite Project Update, Madagascar

RNS Number : 3776K

Tirupati Graphite PLC

04 January 2021

 

4 January 2021

Tirupati Graphite plc ('Tirupati' or the 'Company')

Vatomina Graphite Project Update, Madagascar

Tirupati Graphite plc, the fully integrated, revenue generative, specialist graphite producer and graphene developer with operations in Madagascar and India, is pleased to announce an update on its Vatomina Project ('Vatomina') in Madagascar, which is on track to be commissioned Q2 2021. 

Overview

· Post admission on 14 December 2020, fast tracking expansion of primary graphite output from Vatomina and Sahamamy Madagascan projects with several workstreams initiated

· On track to commission Vatomina in Q2 2021 and build production to 6,000 tpa; this will take the capacity across both projects to 9,000 tpa flake graphite output

· Strong market given demand growth within the flake graphite market driven by electric vehicles and expandable graphite applications

· The earth work conducted annually in mining activities is expected see an increase from current c.200,000 tpa to c.600,000 tpa across the projects upon completion

· The output of by-product sand is expected to see an increase from current c.30,000 tpa currently used internally to c.90,000 tpa

Shishir Poddar, CEO of Tirupati Graphite, said, "The expansion of primary graphite output from our Madagascan projects to reach 9,000 tpa capacity is another important milestone and constituent of our development plan. The demand within the flake graphite market is increasing, which is helpful in our endeavours to expedite the delivery of additional capacity. We are on track to commission the Vatomina project in Q2 2021, which will help us further develop the existing markets for our flake graphite and provide quality inputs for our downstream speciality graphite projects."

Further Information

Since listing on the Main Market of the London Stock Exchange on 14 December 2020, Tirupati has continued to advance its operations across its portfolio including its two primary mining and processing projects in Madagascar, Vatomina and Sahamamy, and its speciality graphite and graphene processing businesses in India.

In Madagascar, the Company's strategy is to increase its production capacity of high-quality flake graphite concentrate with up to 96% purity to 81,000 tonnes per annum ('tpa') by 2024 from the current 3,000 tpa produced at Sahamamy and sold to customers globally.  In line with this, the Company is on track to commission Vatomina in Q2 2021 and build its production to 6,000 tpa having commenced the final phase of construction for the first module; this will take the capacity across both projects to 9,000 tpa.

The following workstreams have been initiated across the projects:

· Construction activities for the processing plant and related infrastructure in Vatomina.

· Strengthening and extension of internal road infrastructure at Vatomina.

· Acquisition of additional land surface rights to expand the existing land bank in the Vatomina Permit area for extensions of mineralisation.

· Procurement of earthmoving equipment and the balance of processing plant equipment.

· Hiring of additional human resources.

· Construction of the new road connecting the Vatomina and Sahamamy projects.

· Preparation of the Sahamamy project for further capacity development.

· Preparations for the next phase of exploration activities to upgrade and expand the existing mineral resource inventory across both projects.

The earth work conducted annually in mining activities is expected see an increase from current c. 200,000 tpa to c. 600,000 tpa across the projects upon completion, while the output of by-product sand is expected to see an increase from current c.30,000 tpa currently used internally to c.90,000 tpa.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

** ENDS **

For further information, please visit https://www.tirupatigraphite.co.uk/ or contact:

Tirupati Graphite Plc Puruvi Poddar	[phone]
Optiva Securities Limited (Broker) Daniel Ingram	[phone]
St Brides Partners Ltd (Financial PR) Isabel de Salis / Cosima Akerman	[phone]

Notes

Tirupati Graphite Plc is a revenue-generative, multi-asset, multi-jurisdictional, fully integrated producer and developer of high-grade natural flake graphite, speciality graphite and graphene, which captures the entire value chain.  With a unique set of properties, graphite has diverse applications with multiple growth streams and graphene forms the new generation of 2D materials. In support of this, the Company places a special emphasis on "green" applications, including renewable energy generation, energy storage and composites, and is committed to ensuring its operations are sustainable as well.

The Company's operations include primary mining and processing in Madagascar, where the Company operates two key projects, Sahamamy and Vatomina; 3,000 tpa of high-quality flake graphite concentrate with up to 96% purity is currently being produced and sold to customers globally, and this is planned to increase to 81,000 tpa by 2024 as per the Company's modular medium-term development plan.

In India, through Tirupati Speciality Graphite Private Limited ('TSG'), with whom the Company has a binding acquisition agreement subject to regulatory approvals, Tirupati processes and produces speciality graphite for use in hi-tech applications like lithium-ion batteries, fire retardants and composites. Its specialty graphite processing operations include the 1,200 tpa Patalganga Project, which was commissioned in July 2019 to manufacture and sell CARBOFLAMEX®, a trademarked fire-retardant expandable graphite product.  At the next stage of development, Patalganga shall further be expanded to 4,800 tpa capacity with capabilities to also produce high purity and micronised graphite, so increasing market and product reach by 2021. TSG has developed unique green processing technologies for manufacturing these advanced materials.

After establishing itself in the specialty graphite markets through the Patalganga Project, an additional 24,000 tpa specialty graphite processing facility is to be established in two 12,000 tpa phases.  The plant will produce expandable, high purity, micronised and spherical graphite.  The west coast of India has been chosen as the location and a detailed feasibility study has been completed.  TSG is also in the process of establishing the Tirupati Graphene and Mintech Research Centre, a state-of-the-art R&D centre focussed on manufacturing graphene, developing its applications, and further providing environmentally friendly technologies consultancy for mineral processing.  Land acquisition is in progress in Bhubaneswar, India, and a detailed feasibility study completed.

 

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MSCUUVBRANUARAR