Tirupati Graphite PLC (LSE:TGR, OTCQX:TGRHF)’s ongoing construction of capacity of its new 18,000 tonnes per year primary flake graphite plant at Sahamamy remains on track for completion by the end of the second quarter of this year.
Upon completion, this plant will increase the company’s total production capacity in Madagascar to 30,000 tonnes per year.
The majority of the earthmoving equipment for this 18,000 tpa plant has now arrived in Madagascar as scheduled, and is being delivered to site ahead of mine opening. This includes hydraulic excavators, payloaders, bulldozers and area graders from leading manufacturers including Hitachi, Komatsu and BEML.
Tirupati is also commissioning three 18,000 tonne per year plants at Vatomina, due to be completed during calendar years 2023 and 2024. The addition of production from these plants will take overall capacity to 84,000 tonnes per year by the end of 2024.
That output level is believed to represent between around 5% and 7% of current global demand.
Redevelopment of the 100 kilowatt Sahamamy hydropower plant is nearing completion and remains on track for commissioning during the current quarter.
The commissioning of the hydropower plant will substantially replace the diesel-generated power currently used, reducing greenhouse gas emissions by around 50% and power costs by around 10% from the next quarter onwards.
Operations at both Sahamamy and Vatomina were restarted smoothly following the Christmas and New Year holiday period and graphite production remains in line with expectations.
"Tirupati Graphite's growth projects across its primary graphite division remain on track to achieve total flake graphite production capacity of 84,000 tonnes per annum by the end of 2024, in line with our vision to be a world leader in the graphite space,” said Tirupati’s executive chairman Shishir Poddar.
“Our Madagascan mines produce high-quality flake graphite concentrate, providing an essential alternative to Chinese sources. Our capacity expansion comes as graphite demand and prices continue to increase, leading to recent media reports forecasting a shortage of flake graphite due to the global growth in EV sector. We are focused on capturing the opportunity this represents to create sustainable value for our shareholders."