Following the start of full-scale mining operations at Vatomina, in Madagascar, on July 28, specialist flake graphite company Tirupati Graphite confirmed on August 13 that processing operations were now also under way.

Operations began on July 28, following the successful delivery of fuel and other supplies by July 27, with processing operations having started on August 2 once the build-up of threshold feedstock at the ore pads of the two preconcentrate units reached suitable levels.

The company said on August 13 that minor issues were addressed between August 2 and 5, during which 59 t of more than 96%-grade flake graphite was produced, and the head grade met the target of 3%. Steady-state production has been ongoing since August 6, with the production of 165 t in seven consecutive working days.

With the 330 days a year operational design, this run rate equates to 7 778 t/y of production, which is greater than 97% of the rated capacity of Vatomina at 3% head grade.

Tirupati said it remains confident in its ability to achieve the 8 000 t/y production run rate from Vatomina, as long as there were no disruptions or inefficiencies caused by financial limitations.

Up to 140 t of finished product had been shipped up to August 10, while 240 t were in the process of being shipped.

Further, the company said its target of getting more than 600 t shipped in August remains on track. Goods are being shipped to customers around the world.

Further Tirupati announced the receipt of director's loans of £230 000 on July 31. The loans were received from directors Michael Lynch-Bell (£50 000), Alastair Bath (£130 000) and Puruvi Poddar (£50 000).

The company received a small value-added tax (VAT) refund of about $14 000 in the previous week. This is expected to be the first of the VAT refunds from the Madagascan government after a gap of about 20 months since the last receipt of VAT refunds.

The company said it was still pursuing the continuation and increased volume of Madagascan VAT refunds, which exceeded about $2-million.

In the meantime, Tirupati has agreed with its Madagascan suppliers to provide new goods and services to an amount equivalent to that paid by the company against previous dues.

"Full-scale mining operations have commenced at Vatomina, with production focused on only the higher-grade flake graphite to ensure the best price realisation. Our operational discipline and focus on the higher-grade graphite have led to us reducing the overall cost structure, while still being able to achieve the 8 000 t/y production run rate.

“Vatomina operating at full efficiency will contribute to higher operating margins within the group while we look to bring the Sahamamy project back into operation," Tirupati CEO and MD Shishir Poddar said on August 13.