Name of the Project
Munglinup graphite project.

Location
Western Australia.

Project Owner/s
Mineral Commodities (MRC) and Gold Terrace.

Project Description
A definitive feasibility study (DFS) confirmed MRC’s view in May 2020 that the Munglinup project will become a crucial asset in its ambition to supply natural graphite to the key high-demand battery anode markets.

The project has an ore reserve of 4.24-million tonnes grading 12.8% total graphitic carbon, supporting a mine life of 15 years, with production estimated at 52 000 t/y of 95%-purity graphite concentrate.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at a 7% discount rate, of $111-million and an internal rate of return of 30%, with a payback of 2.7 years.

Capital Expenditure
$61-million.

Planned Start/End Date
Graphite concentrate production is expected to start in the fourth quarter of 2021.

Latest Developments
MRC is in negotiations with its joint venture (JV) partner Gold Terrace to settle a dispute regarding its right to increase its interest in the project.

MRC holds a 51% interest in the project pursuant to a farm-in and JV agreement with Gold Terrace, which holds the balance. The agreement provides for MRC to increase its interest to 90% by completing a feasibility study, paying A$800 000 and issuing 30-million shares.

However, Gold Terrace is disputing MRC’s right to increase its interest to 90%, stating that its feasibility study does not comply with the requirements specified in the agreement.

Maintaining that it has satisfied the earn-in obligation, MRC is in discussions with Gold Terrace to reach a commercial settlement. Should an agreement be reached, MRC would potentially increase its interest to 100%.

Key Contracts and Suppliers
Mondium – a JV between Lycopodium and Monadelphous (DFS).

Contact Details for Project Information
Mineral Commodities, tel +61 8 6253 1100 or email info@mncom.com.au.