International Graphite (ASX: IG6) has reported steady progress across its vertically integrated ‘mine-to-market’ graphite strategy during the June quarter. The company is focused on establishing a diversified portfolio of downstream processing facilities underpinned by its 100%-owned Springdale graphite resource in Western Australia. International Graphite believes that ongoing trade actions in the US, along with strong demand from Japanese and Korean manufacturers, validate its decision to expand its footprint beyond Australia. International Graphite aims to become a leading global supplier of processed graphite products. The company is developing graphite processing capacity, with integrated operations spanning from mining to processing and sales.
Recently, International Graphite signed a co-operation agreement to establish a new expandable graphite facility in Germany. Expected to produce 3,000 tonnes annually from 2027, the facility will address a critical need within the EU. The company is also advancing its Collie micronising facility in WA, set to be Australia’s first commercial-scale micronising operation. The plant will have an initial capacity of 4,000tpa in Stage 1, with scalability to 7,500tpa in Stage 2. Feasibility studies are ongoing at the Springdale graphite project, with construction of the mine and concentrator scheduled to commence in 2027 and first production targeted for 2028.
International Graphite’s proposal to the US Department of Defense for feasibility funding progressed to Award/Basket Consideration during the June period. The company has also identified a potential site in Savannah, Georgia, for future downstream operations. The US Department of Commerce recently imposed a 93.5% anti-dumping tariff on certain graphite imports from China, a decision IG6 expects will bolster demand for graphite from trusted jurisdictions such as Australia.
At 30 June, IG6 reported $1.081 million cash on hand and has approximately $10.5 million in undrawn state government grants contracted for the Collie micronising facility and Springdale project. Subsequent to the end of the quarter, major shareholder Comet Resources sold 27.5 million IG6 shares to new and existing investors, using the proceeds to fully repay the $1.125m it owed to International Graphite.
