Traditional market downstream test work of graphite concentrate from the Kasiya Rutile-Graphite Project in Malawi has delivered promising results for Sovereign Metals Ltd (ASX:SVM, OTC:SVMLF, AIM:SVML) as it sizes up a diversified global graphite supply chain.
Global graphite demand
The test work, conducted by independent consultancy ProGraphite GmbH in Germany, confirmed the product’s potential suitability for refractory materials – a sector that accounts for 24% of global graphite demand.
“These initial test results for traditional graphite applications are very promising,” managing director and CEO Frank Eagar said.
“High resistance to oxidation and low levels of sulphur are two key attributes required to produce a premium graphite product for traditional refractory and foundry applications.
“Combining these attributes with the > 50% large flakes of the Kasiya resource provides Sovereign with multiple marketing options.
“Our evaluation of coarse Kasiya concentrate for traditional applications will continue in the coming months, complementing the optimisation work on the fine (180-micron) fraction for anode materials, where we have also had excellent initial results.
“We are very pleased that our test-work program continues highlighting Kasiya’s graphite’s premium quality.
“Keeping in mind that graphite is a co-product for Kasiya, when combining these excellent results with one of the largest graphite resources globally, industry-low operating costs and lowest industry comparable greenhouse gas emissions, Kasiya presents significant advantages over its graphite peers as a long-term secure source of supply.”
A critical component
Graphite’s thermal conductivity, low expansion rates and chemical inertness make it a critical component in refractory products such as furnace linings, crucibles and bricks.
Some of its key benefits include increased resistance to thermal shock and cracking, reduced thermal gradient and structural damage risks, the ability to repel molten slag and decreased wettability to metals and an improved lifespan of refractory products.
The size distribution of Kasiya’s graphite flakes offers considerable optionality. Larger flakes are ideal for refractories, while smaller flakes cater to battery applications.
The numbers
The test-work focused on Kasiya’s coarse flake graphite (>180 microns), a key requirement for refractory applications due to its high oxidation resistance. Initial findings include:
- no oxidation below 400°C;
- minimal mass loss of 6.4% after a four-hour hold at 650°C; and
- very low oxidation rate of 1.6% per hour at 650°C.
The tests, conducted via Thermogravimetric Analysis (TGA), measured weight loss during temperature-controlled heating.
Results showed no oxidation during the 400°C hold and limited weight loss up to 650°C, highlighting Kasiya graphite’s resistance to oxidation – an essential characteristic for materials exposed to high furnace temperatures.
Additional attributes include low levels of sulphur impurities (0.02%), which further enhance the product’s suitability for refractories.
Geopolitical and export implications
This news from Sovereign is timely, with the recent announcement by key producer China of restrictions on the export of graphite and titanium alloys.
Effective December 2024, the controls cover technologies used in civilian and military applications, with natural flake graphite and spherical graphite – key for electric vehicle batteries – falling under these new measures.
China currently dominates the market, producing 75% of the world’s flake graphite and 96% of spherical graphite.
The company’s Kasiya project, which is being modelled as the world’s largest producer of high-grade titanium feedstock and natural flake graphite, could play a pivotal role in diversifying global supply chains.
Sovereign Metals is leveraging these results to engage with potential traditional graphite offtakers while complementing its ongoing optimisation program for battery-grade anode materials.
Tests will continue to evaluate Kasiya’s coarse flake graphite for traditional and expandable applications, with additional results expected in the coming months.