Company to incur a reduced royalty rate of 2% for the minerals recovered from the graphite mine in South Australia
Renascor Resources has secured the ‘new mine’ classification for its 100% owned Siviour Graphite Project from the South Australian Government Treasury.
The attainment of the status enables the company to incur a reduced royalty rate of 2% of the net value of the minerals recovered from the graphite mine through 30 June 2026. This marks a reduction from 3.5% of royalty rate incurred over the initial years of production, said the company.
Renascor Resources claimed that the Siviour Graphite Project will become the first vertically integrated purified spherical graphite (PSG) production facility in Australia.
Renascor Resources managing director David Christensen said: “Renascor is delighted to receive confirmation of Siviour’s ‘New Mine’ status and the consequential reduction in the royalty rate applicable to the project. This outcome further underlines Siviour’s strategy of being among the world’s lowest cost producers of Purified Spherical Graphite.
“Renascor has enjoyed a strong level of support from the South Australian Government, which recognises the substantial value-add that the world-class, world-scale Siviour Purified Spherical Graphite production facility brings to South Australia.”
According to the company, the Siviour graphite deposit has the second largest proven reserve of graphite in the world and is also the largest graphite reserve outside of Africa.
The Siviour project is underpinned by a 10-year offtake memorandum of understanding (MOU) for 10ktpa of PSG with anode company Shanxi Minguang New Material Technology (Minguang New Material), which is a subsidiary of Fujian Metallurgical.
Minguang New Material is developing a 40ktpa lithium-ion battery anode manufacturing facility in Shanxi Province in China.
Renascor Resources is planning to achieve PSG production capacity of 28ktpa to become a low-cost supplier of materials critical for producing electric vehicle batteries and off-grid power storage.