International Graphite Ltd (ASX:IG6, FRA:H99, OTC:IGRPF) has taken a major step toward building its downstream graphite processing hub in Western Australia, signing the key construction contract for the process building at its new Collie Micronising Facility.
The contract has been awarded to Bunbury-based Prosser Built, a construction company with more than 80 years’ experience delivering industrial and commercial projects across Western Australia’s south-west.
This is an important milestone for International Graphite as it advances plans to establish a local graphite processing platform designed to support secure supply chains for high-specification industrial graphite products.
The facility will also draw on local engineering, electrical, civil and earthmoving firms as part of the company’s local content strategy.
The news follows the signing of a Heads of Terms agreement with Wogen Pacific Ltd to support product sales, marketing and graphite concentrate supply for Collie
Project remains within budget
International Graphite said the construction contract price sits within the budgeted capital cost estimate for the project.
That estimate includes $6.3 million for Stage 1 and a further $1.7 million for Stage 2.
Graphite micronising equipment for Stage 1 has already been selected and orders have been placed.
Vendor testwork is underway to finalise equipment selection for Stage 2, with orders expected to be placed next quarter.
IG6 will raise $4 million before costs through a placement to sophisticated and professional investors, with funds to support its midstream graphite processing strategy in Europe and Western Australia.
Backed by government support
The Collie Micronising Facility has support from the Western Australian Government through the Collie Industrial Transition Fund and from the Australian Government through the Critical Minerals Office.
The support reflects the strategic importance of building critical minerals processing capacity in trusted jurisdictions as global markets look for reliable alternatives to traditional graphite supply chains.
What’s ahead
International Graphite expects the full Collie development, covering both Stage 1 and Stage 2, to be completed in the second quarter of 2027.
In the near term, the company will continue construction planning, progress Stage 1 equipment delivery and finalise Stage 2 equipment selection ahead of further orders next quarter.