TIDMSVML
RNS Number : 6856G
Sovereign Metals Limited
31 March 2022
SOVEREIGN METALS LIMITED
NEWS RELEASE | 31 MARCH 2022
SOVEREIGN PRESENTS KASIYA'S LOW CARBON FOOTPRINT NATURAL
GRAPHITE AT UK HOUSES OF PARLIAMENT
-- Potential for Sovereign to become an important supplier of
low carbon footprint natural graphite to the UK presented at
a Roundtable on behalf of the All-Party Parliamentary Group
for Critical Minerals organised by the Critical Minerals Association
-- The Company showcased how its natural graphite and rutile products
could help tackle climate change and bring significant benefits
to Malawi through job creation, community initiatives and fiscal
benefits
-- The Company showcased how its natural graphite and rutile products
could help tackle climate change and bring significant benefits
to Malawi through job creation, community initiatives and fiscal
benefits
-- China currently produces over 75% of the world's natural graphite,
almost 80% of the world's synthetic graphite and 100% of the
world's natural graphite anodes used in lithium-ion batteries
-- Each tonne of graphite produced from Kasiya is expected to
have a Global Warming Potential of only 0.2 tonnes CO(2) e
which represents 80% lower greenhouse gas emissions compared
to natural graphite produced in the Heilongjiang Province,
China
-- Recent peer-reviewed independent studies published in the Journal
of Industrial Ecology estimate Global Warming Potential of
synthetic graphite at 20.6 tonnes CO(2) e i.e., 103x that of
Kasiya's natural graphite
-- Kasiya's graphite characterisation shows a coarse flake, high
purity and highly crystalline product which should be suitable
for lithium-ion batteries and wider industrial uses
Sovereign Metals Limited (ASX:SVM; AIM:SVML) (Sovereign or the
Company) is pleased to announce that it has presented at a
Roundtable on behalf of the All-Party Parliamentary Group (APPG)
for Critical Minerals at the UK Houses of Parliament. The APPG for
Critical Minerals was established in March 2020 with the purpose to
highlight the UK's need for a secure, sustainable supply of
critical minerals to deliver the nation's industrial strategy which
has since transitioned into the Plan for Growth: "Build Back
Better".
Sovereign's Chairman Ben Stoikovich presented the potential for
the Company's Kasiya Rutile Project (Kasiya) in Malawi to become an
important supplier of low carbon-footprint natural graphite to the
UK.
Sovereign's Chairman Ben Stoikovich commented: "The importance
of sustainable supply chains for clean-tech solutions such as
lithium-ion battery powered electric vehicles cannot be
underestimated. As such, Kasiya could become globally strategically
important as it has the potential to supply not one, but two,
critical raw materials to world economies looking at building a
sustainable future and tackling climate change."
ENQUIRIES
Dr Julian Stephens (Perth) Sam Cordin (Perth) Sapan Ghai (London)
Managing Director +61(8) 9322 6322 +44 207 478 3900
+61(8) 9322 6322
Nominated Adviser on AIM
RFC Ambrian
Bhavesh Patel / Andrew Thomson +44 20 3440 6800
Joint Brokers
Berenberg +44 20 3207 7800
Matthew Armitt
Jennifer Lee
Varun Talwar
Optiva Securities +44 20 3137 1902
Daniel Ingrams
Mariela Jaho
Christian Dennis
BENCHMARKING SOVEREIGN'S NATURAL GRAPHITE GWP
The LCA benchmarked the GWP of Sovereign's natural flake
graphite product versus natural flake graphite concentrate produced
in the Heilongjiang Province, China. This benchmark was chosen as a
comparison point as it is one of the largest global production
centres for natural flake graphite.
The Study made efforts to ensure maximum comparability for the
benchmarking exercise meaning that the Study focused on graphite
produced at site and does not include transportation. The Study
concluded that Sovereign's natural flake graphite concentrate has
significantly lower greenhouse gas emissions than the Chinese
produced natural flake graphite concentrate from the Heilongjiang
Province.
Each tonne of Sovereign's natural graphite is estimated to have
a GWP of 0.2 tonnes CO(2) e (carbon dioxide equivalent) - 5x lower
than producing natural flake graphite concentrate in the
Heilongjiang Province, China which is estimated to have a GWP of
1.1 tonnes CO(2) e for each tonne produced.
The significantly lower GWP for Kasiya graphite is due to the
fact that it is hosted in soft, friable saprolite material which
will be mined via hydro methods (high pressure water monitors)
powered by renewable energy sources - hydro power from the Malawi
grid and on-site solar power. This is opposed to the production in
Heilonjiang Province, China where hard-rock ore requires drilling,
blasting, excavation, trucking, crushing and grinding - overall
high CO(2) e activities.
In addition to the results of the LCA, the Company's research
noted a report published in the Journal of Industrial Ecology
estimating the GWP of synthetic graphite production. Synthetic
graphite is manufactured by high-temperature treatment of
by-products of hydrocarbon refining such as petroleum coke and coal
tar pitch. Currently, the highest purity synthetic graphite is
produced from petroleum needle coke which is a complex, emission,
and energy intensive process which is estimated to have a GWP of
20.6 tonnes CO(2) e for each tonne produced.
LOW CARBON-FOOTPRINT NATURAL GRAPHITE - CRUCIAL FOR
SUSTAINABILITY
The lithium-ion battery sector is the main emerging market for
flake graphite. Greater capacity batteries, such as those required
for electric vehicles, are expected to drive significant demand for
graphite over the coming years. It is forecast the battery sector
will drive the largest demand for graphite by 2028, with graphite
making up to 50% of the composition of a lithium-ion battery.
Currently, China is the world's largest supplier of natural
flake graphite. In 2020, leading data provider and market
intelligence publisher Benchmark Mineral Intelligence reported that
China produced 86% of all lithium-ion battery anodes from natural
and synthetic graphite and 100% of all the world's natural graphite
anodes.
Industry's interaction with supply chain participants indicates
the progression towards higher proportions of natural graphite used
in battery anodes will be supported by its lower cost and superior
environmental credentials. Environmental footprint of electric
vehicles will become increasingly important as electric vehicle
penetration of the overall automobile market accelerates.
KASIYA'S GRAPHITE BY-PRODUCT CHARACTERISATION DEMONSTRATES
SUITABILITY FOR WIDE RANGE OF USES
Initial metallurgical and characterisation work on graphite from
Kasiya shows a very high-quality product with premium chemical
characteristics and high crystallinity and specification indicating
that product should be suitable for lithium-ion battery uses and
traditional industrial applications - subject to further downstream
testwork and analysis.
Sovereign has developed a comprehensive bulk scale metallurgy
and downstream test work program to build on these initial results
and confirm the commercial potential of the graphite by-product
from Kasiya.
Graphite rich mineral concentrate will be produced from the
light fraction of the rutile gravity spiral tails and processed in
a separate graphite flotation plant to produce a high quality
graphite by-product. A very coarse-flake and high-grade graphite
product at 96% total graphitic carbon (TGC) can be produced via
this simple flowsheet. This product has over 60% in the large to
super-jumbo fractions (+180<MU>m) with overall graphite
recovery from the raw sample to product of 62% (Table 1).
Overall, the graphite from Kasiya is very coarse flake and
highly crystalline with a high purity. High purity and high
crystallinity are important features required for use in
lithium-ion battery anodes. The high crystallinity means that the
graphite will have high electrical conductivity - a key
requirement. High purity means the material will be easier to
upgrade to 99.95% TGC, the minimum requirement for lithium-ion
battery anodes.
Table 1: Graphite Specifications
Particle Size Carbon Weight Distribution Flake Category
Tyler Mesh Micron (<MU>) (%) (% w/w)
+32 +500 96.0 5.4 Super Jumbo
=========== ============== ======= ==================== ===============
-32 +48 -500 +300 96.6 25.1 Jumbo
=========== ============== ======= ==================== ===============
-48 +80 -300 +180 96.7 30.9 Large
=========== ============== ======= ==================== ===============
-80 +100 -180 +150 96.8 10.9 Medium
=========== ============== ======= ==================== ===============
-100 +150 -150 +106 96.11 14.4 Small/Medium
=========== ============== ======= ==================== ===============
-150 +200 -106 +75 95.8 7.5 Small
=========== ============== ======= ==================== ===============
-200 -75 93.8 5.8 Amorphous
=========== ============== ======= ==================== ===============
Total 96.3 100
=========================== ======= ==================== ===============
Forward Looking Statement
This release may include forward-looking statements, which may
be identified by words such as "expects", "anticipates",
"believes", "projects", "plans", and similar expressions. These
forward-looking statements are based on Sovereign's expectations
and beliefs concerning future events. Forward looking statements
are necessarily subject to risks, uncertainties and other factors,
many of which are outside the control of Sovereign, which could
cause actual results to differ materially from such statements.
There can be no assurance that forward-looking statements will
prove to be correct. Sovereign makes no undertaking to subsequently
update or revise the forward-looking statements made in this
release, to reflect the circumstances or events after the date of
that release.
To view this announcement in full, including all illustrations
and figures, please refer to www.sovereignmetals.com.au .
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