EcoGraf and GR Engineering sign LOI for 20,000tpy graphite facility

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.Asian Metal Copyright The proposed facility has a pre-tax net present value of $141 million, generating an internal rate of return of 36.Asian Metal Copyright8 million for an initial 5,000tpy of graphite, followed by a further $49.Asian Metal Copyright8 million for an initial 5,000tpy of graphite, followed by a further $49.Asian Metal Copyright2 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.


.Asian Metal Copyright6% and annual EBITDA of $35 million based on an upfront capital cost of $22.Asian Metal Copyright