In a strong validation of the company’s business strategy, International Graphite Ltd (ASX:IG6) has signed a funding agreement with the Commonwealth of Australia for a grant of $4.7 million from the national Critical Minerals Development Program (CMDP).
Australia’s Minister for Resources Madeleine King MP announced IG6 had been awarded the competitive grant from the Department of Industry, Science and Resources on May 18, 2023.
The CMDP is designed to provide funding for early or mid-stage projects planning to produce critical minerals.
Grants can be used for feasibility studies, engineering design work and building pilot or demonstration facilities among other activities.
Managing director and CEO Andrew Worland said the funds would help fast-track the company’s strategy for an integrated mine-to-market graphite supply chain in Western Australia.
Urgent need for graphite supply
“There is an urgent need to expand global graphite supply and the pressure is on for new sources to reach market as quickly as possible,” Worland said.
“With our planned mine and concentrator at the Springdale Graphite Project near Hopetoun and downstream battery anode processing facilities in Collie, we offer a unique Western Australian-focused opportunity to be a pre-eminent global supplier of choice to the lithium-ion battery markets.
“We are very pleased that government recognises graphite as key to achieving decarbonisation commitments and that our business has the potential to strengthen Australia’s position as a leader in critical minerals.”
The CMDP funding will be provided to International Graphite over a 22-month period.
IG6 expects the first tranche of $1.7 million to be made available before the end of June.
Project and processing plant locations.