EcoGraf and GR Engineering sign LOI for 20,000tpy graphite facility
2020-01-14 16:13:37 [Print]
Australian-based EcoGraf Limited has signed a letter of intent (LOI) with GR Engineering Services for an engineering, procurement and construction (EPC) contract for the development of a 20,000tpy battery-grade graphite facility in Western Australia.
The two companies expect to enter into a formal contract for the new, state-of-the-art manufacturing facility.
EcoGraf said the parties have been working to complete pre-development activities for the project and it is finalizing its arrangements with the Western Australian Government's land development agency over a proposed 6.7 ha site in Kwinana.
The proposed facility has a pre-tax net present value of $141 million, generating an internal rate of return of 36.6% and annual EBITDA of $35 million based on an upfront capital cost of $22.8 million for an initial 5,000tpy of graphite, followed by a further $49.2 million to expand production to 20,000tpy of battery graphite, according to EcoGraf.
EcoGraf says the development of the project is subject to a final investment decision, expected in the first half of the year.
The two companies expect to enter into a formal contract for the new, state-of-the-art manufacturing facility.
EcoGraf said the parties have been working to complete pre-development activities for the project and it is finalizing its arrangements with the Western Australian Government's land development agency over a proposed 6.7 ha site in Kwinana.
The proposed facility has a pre-tax net present value of $141 million, generating an internal rate of return of 36.6% and annual EBITDA of $35 million based on an upfront capital cost of $22.8 million for an initial 5,000tpy of graphite, followed by a further $49.2 million to expand production to 20,000tpy of battery graphite, according to EcoGraf.
EcoGraf says the development of the project is subject to a final investment decision, expected in the first half of the year.
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