Tirupati Graphite PLC (LON:TGR) said production and sales from its Sahamamy deposit in Madagascar ran at record levels during the first three months of 2021.
Sales of high-quality flake graphite were above 97% of nameplate capacity of 3,000 tonnes a year, added the London standard listed group.
The new 9,000 tonne per annum (tpa) Vatomina project is set to be commissioned in the current quarter, Tirupati added, lifting primary flake graphite capacity in Madagascar to 12,000tpa.
Construction at Vatomina is nearing completion, it said with mining equipment fleet arriving and various workstreams progressing.
Vatomina is the next stage in Tirupati’s plan is to increase production to 84,000tpa by 2024 in several phases, a 28-fold jump from current levels.
Shishir Poddar, chief executive, said: “The increase in capacity in Madagascar to 12,000tpa is an important near-term milestone, being the current key revenue source for the company, and positive step in our existing plan to increase capacity to 84,000tpa by 2024.
"We are growing at a particularly opportunistic time. In particular, the key role of flake graphite graphene in the green economy is being recognised across the globe with the likes of UBS, The World Bank and many others releasing reports suggesting increasing demand for this critical material could cause the market to grow in double-digit CAGR.”