Australia-based mining company Lincoln Minerals is set to construct a $1.94m graphite pilot plant by the end of 2013 at Kookaburra Gully project on the Eyre Peninsula, South Australia.

The company claims that the capacity of the proposed plant will be 2.26 tons of graphite concentrate per day within six months of construction commencing. The construction of the plant is reportedly backed by the positive results from the recently concluded scoping study.

Commenting on the developments, Lincoln managing director Dr John Parker stated that with the completion of scoping study for a pilot graphite production plant, the company has moved closer to commercial output from the project.

"Lincoln is aiming to have trial processed graphite samples ready and waiting for customer qualifications later this year or early 2014, subject to finance and approvals for the pilot plant’s construction," added Parker.

The mobile pilot plant would allow it to process run-of-mine material to test and confirm metallurgical characteristics of the input material for an optimal final process flow sheet, the company added.

Meanwhile, the company has reduced the full scale processing plant and increased the product output due to higher grade indicated mineral resource.

The Kookaburra Gully’s indicated and inferred mineral resources recorded 2.25 million tons grading 15% total graphitic carbon with 338,000 tons of contained graphite at a cut-off grade of 5% total graphitic carbon.