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RNS Number : 2912Z
Tirupati Graphite PLC
24 January 2022
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be in the public domain.
24 January 2022
Tirupati Graphite plc
('Tirupati' or the 'Company')
Progress Update for Madagascar Expansion Projects
Tirupati Graphite plc (TGR.L, TGRHF.OTCQX), the specialist
graphite and graphene company developing sustainable new age
materials, is pleased to provide a progress update on the expansion
of its graphite production operations in Madagascar.
Highlights
-- Construction of the new 18,000 tpa primary flake graphite
plant at Sahamamy remains on track for completion by the end of
calendar Q2-2022 and upon completion, this plant will increase
total production capacity in Madagascar to 30,000 tpa
-- The majority of the earthmoving equipment for this 18,000 tpa
plant has now arrived in Madagascar as scheduled, and is being
delivered to site ahead of mine opening
-- Tirupati is also commissioning three 18,000 tpa plants at
Vatomina, due to be completed during calendar years 2023/4 to
increase total production capacity in Madagascar to 84,000 tpa by
end 2024; believed to represent c.5-7% of current global demand
-- Expected that ongoing and future developments will
incorporate Tirupati's new Column Flotation System which has cost
and emission reduction benefits, and improves operating
efficiency
Progress Update
Tirupati today announces that most of the new earthmoving
equipment for the 18,000 tpa plant at Sahamamy, which includes
hydraulic excavators, payloaders, bulldozers and area graders from
leading manufacturers including Hitachi, Komatsu and BEML, has
arrived in Madagascar on schedule despite logistical challenges
imposed by the pandemic. The remaining items, four 30 tonne
articulated dump trucks, are in transit and expected to arrive on
site in early February 2022. This new mining equipment acquired by
the Company has a combined in country landed cost of c.US$3
million.
In accordance with the project delivery plans, ahead of
completing construction of the 18,000 tpa processing plant at
Sahamamy, Tirupati will commence mine opening activities at the
currently nascent Sahasoa deposit area within the Sahamamy project
as well as strengthening internal infrastructure to support the
expanded operations. The Sahasoa deposit constitutes the majority
of the current delineated JORC resources at the Sahamamy project
and has been reserved to supply ore feedstock to the new plant
under construction.
Redevelopment of the 100 kilowatt Sahamamy hydropower plant is
nearing completion and remains on track for commissioning during
the current quarter. The commissioning of the hydropower plant will
substantially replace the diesel generated power currently used,
reducing GHG emissions by c.50% and power costs by c.10% from the
next quarter onwards.
As announced on 20 January 2022, the 18,000 tpa plant at
Sahamamy has been redesigned to use the newly developed Column
Flotation System. This has been achieved without delaying the
planned timelines and is expected to deliver significant benefits
on costs, emissions and operating efficiencies. In addition, the
design of the processing plant has been optimised to eliminate the
need to transport mined ore from Sahasoa to the main plant which is
located c.3 kilometres away. This will deliver further cost and
emission reduction benefits.
Tirupati is reviewing the designs for the three development
modules planned at Vatomina, totalling 54,000 tpa of additional
capacity, to adopt the same model and the new Column Flotation
System. These initiatives will further strengthen the Company's
status as a lowest cost quartile producer of natural flake graphite
. The Company will continue to update the markets as these plans
evolve.
Production
Operations at both Sahamamy and Vatomina were restarted smoothly
following the Christmas and New Year holiday period and graphite
production remains in line with expectations.
Shishir Poddar, Executive Chairman of Tirupati Graphite,
said:
"Tirupati Graphite's growth projects across its primary graphite
division remain on track to achieve total flake graphite production
capacity of 84,000 tonnes per annum by the end of 2024, in line
with our vision to be a world leader in the graphite space. Our
Madagascan mines produce high-quality flake graphite concentrate,
providing an essential alternative to Chinese sources.
"Our capacity expansion comes as graphite demand and prices
continue to increase, leading to recent media reports forecasting a
shortage of flake graphite due to the global growth in EV sector.
We are focused on capturing the opportunity this represents to
create sustainable value for our shareholders."
Enquiries:
Tirupati Graphite Plc admin@tirupatigraphite.co.uk
Puruvi Poddar - Chief of Corporate & Business +44 (0) 20 39849894
Development
Optiva Securities Limited (Broker)
Ben Maitland - Corporate Finance +44 (0) 20 3034 2707
Robert Emmet - Corporate Broking +44 (0) 20 3981 4173
FTI Consulting (Financial PR) +44 (0) 20 3727 1000
Ben Brewerton / Nick Hennis / Ojasvi G oel tirupati@fticonsulting.com
/ Kelly Smith
https://www.tirupatigraphite.co.uk/
About Tirupati Graphite
Tirupati Graphite Plc is the specialist graphite and graphene
company developing sustainable new age materials. With a unique set
of properties, graphite has diverse applications with multiple
growth streams and graphene forms the new generation of 2D and
advanced materials. The Company places a special emphasis on
"green" applications, including renewable energy and energy
efficiency, energy storage, thermal management, and advanced
materials development, 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; 12,000 tpa installed capacity of
high-quality flake graphite concentrate with up to 96% purity is
currently being produced and sold to customers globally, planned to
increase to 84,000 tpa by end 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 is developing a suite of
speciality graphite for use in hi-tech applications like
lithium-ion batteries, fire retardants, thermal management, and
composites. Its current operations include the 1,200 tpa Patalganga
Project, focused on manufacturing the Company's trademarked
expandable graphite products CARBOFLAMEX(R) and GrafEN 45545(TM).
TSG is further expanding the Patalganga Project to 4,800 tpa and
developing the 30,000 tpa specialty graphite project in two 15,000
tpa modules which will include capabilities to manufacture
high-purity, expandable, micronized and spherical graphite and
using its unique green processing technologies for the
manufacturing of these advanced materials.
TSG has also established and continues to develop the Tirupati
Graphene and Mintech Research Centre, a state-of-the-art R&D
centre focussed on manufacturing graphene, developing its
applications and advanced materials using graphene, and further
providing environmentally friendly technologies consultancy for
mineral processing.
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