Tirupati Graphite PLC (LSE:TGR, OTCQX:TGRHF) said recommissioning of a preconcentrate plant and construction of a larger second plant at its Vatomina project will give the company a net ore throughput capacity of 2,400 tons per day, rising again by the end of 2022 and again in the first quarter of 2023.
The Madagascar-focused graphite producer said the reorganisation of its Vatomina and Sahamamy projects will result in it having a nameplate capacity of 36,000 tonnes per year flake graphite production across the two projects.
Throughput for the final quarter of this year was guided to be 2,500-2,900 tons per day, with guidance for this to rise to 6,100-6,500 for the January to March quarter.
This is expected to result from the relocation and recommissioning of the 600 tons per day Vatomina preconcentrate plant and the construction of a second plant with a capacity of reaching 12,000 tons per annum (tpa), and potentially 18,000 tons “with minor additions”.
After recommissioning was completed in August, the first plant has achieved the nameplate ore feed capacity and remained in regular operation at or above that capacity since the beginning of this month, Tirupati said.
It said the preconcentrate plant, pumping of preconcentrate, and final concentrate plant operations are synchronised to enable smooth and constant operation.
An existing 3,000 tpa plant at Sahamamy, said to have been operating at near capacity, has been sending its dehydrated concentrate for processing and finishing at Vatomina with the aim of optimising costs.
Once the second Vatomina preconcentrate plant is up and running, the company said it will decommission the Sahamamy 3,000 tpa operation and redeploy the equipment elsewhere.
In the reconfigured operations there will be two preconcentrate plants and one final concentrate plant at each of the two projects, the company said.
Progressively, the AIM-listed company said, it will aim to reach nameplate 8,000 tons per quarter flake graphite output from the operations, with any further capital expenditure requirements to achieve this growth expected to be met from the internal resources.
It added that focus will remain on streamlining its operations and seeking to achieve “>90% capacity utilisation” from current operations and those under development, as well as “strengthening projects and engage with the markets”.
It aims to develop the balance of 54,000 tons planned capacity across existing Madagascan projects by the end of 2024.
This will help Tiripati achieve the long-term goal of producing circa 8% of the global flake graphite market or 400,000 tpa by 2030, said executive chairman Shishir Poddar.
“We are committed to continually innovating to ensure efficient operations, and the successful integration of the preconcentrate plant at Vatomina streamlines our production and strengthens our resilience against any adverse weather conditions,” he added.
The company added that the commissioning of a 100KW hydro power plant and power evacuation overhead line are now complete, with trial runs expected to begin from the middle of next month and once up and running estimated to save circa 350-400 litres of diesel per day.
Plans are also in place to develop a second 400KW hydro prospect in Sahamamy, it added, with the expectation of fast-tracking construction and saving a further 1,400-1,600 litres of diesel once completed.