https://www.miningweekly.com
Industrial|Mining|PROJECT|Resources|Services
Industrial|Mining|PROJECT|Resources|Services
industrial|mining|project|resources|services

Northern Graphite plans increased production rate at Ontario project

11th February 2019

By: Creamer Media Reporter

     

Font size: - +

The Bisset Creek graphite project, in Ontario, could yield at least 20% more production for a relatively modest 6% increase in capital costs, owner Northern Graphite said on Friday, citing an ongoing review of the project by G Mining Services.

The TSX-V-listed company said that higher production of 25 000 t/y would reduce operating costs and would have a positive impact on the net present value (NPV) and internal rate of return (IRR) of Bisset Creek.

The previously filed feasibility study for the project contemplated producing 20 800 t/y of graphite concentrate in Phase 1, which has a capital cost of C$101.6-million. Phase 2 would double production.

A preliminary economic assessment (PEA) encompassing Phase 1 and 2 estimated a pretax IRR of 30.1% and a pretax NPV of $304.9-million, using an 8% discount rate.

“The Bisset Creek project already has attractive economics at current prices and they will be further enhanced by the higher production level. We do not believe this will significantly increase the risk associated with introducing new supply into the market. Most graphite deposits contain large resources, but production must be “right-sized” for markets as some large, low-margin segments are currently unattractive to western producers,” explained CEO Gregory Bowes.

He added that Northern’s strategy was to focus on higher value industrial markets, mainly the US and Europe, where many customers required large and extra-large flake graphite.

Edited by Mariaan Webb
Creamer Media Senior Deputy Editor Online

Comments

Showroom

SBS Tanks
SBS Tanks

SBS® Tanks is a leading provider of innovative water security solutions with offices in Southern Africa, East and West Africa, the USA and an...

VISIT SHOWROOM 
Aqs image
AQS Liquid Transfer

AxFlow AQS Liquid Transfer (Pty) Ltd is an Importer and Distributor of Pumps in Southern Africa

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Mining Weekly Editor Martin Creamer
Copper shares soar and green hydrogen goes digital
Updated 7 hours ago
Magazine cover image
Magazine round up | 26 April 2024
26th April 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.082 0.117s - 91pq - 2rq
1:
1: United States
Subscribe Now
2: United States
2: