Tirupati Graphite PLC (LSE:TGR, OTCQX:TGRHF) said it on track to increase its primary flake graphite production capacity in Madagascar to 30,000 tonnes a year by September 2022.
The company previously announced that it had faced challenges achieving production targets in the first half as adverse weather conditions caused difficulties in transporting mined ore to the processing plant.
It said today that it will implement measures to address these challenges and mitigate against future issues.
It announced a 5km road improvement programme, reduced from a previous estimate of 50km, and plans to set up pre-concentrate units at pit heads, followed by final processing in the plant area, to reduce heavy loads on the road network.
The first leg of processing, which removes 80-90% of impurities from the ore, will shift to the mine pit heads thus referred to as the 'pre-concentrate' units, it explained.
At Vatomina, the pre-concentrate unit is under development and is expected to be completed by the end of this month, which will help Tirupati achieve the target production rate. Construction of pre-concentrate plants at Sahamamy has also started and remains on track for September completion.
The reduced transportation requirement will reduce emissions from operations, supporting Tirupati's target to reach net-zero in both processing and mining, and is in line with the company's aim of becoming the first net-zero emissions and zero-waste producer of flake graphite.
"We are constantly innovating to overcome challenges and look to use this as an opportunity to improve our operations,” said executive chairman Shishir Poddar. “These solutions will also help reduce the investment pressure on substantial infrastructure build.”
The commissioning of the first hydropower plant at Sahamamy is ongoing, in line with the target of July 2022, Tirupati said.