EDITOR: | January 15th, 2014 | 2 Comments

Syrah Resources Limited: Metallurgical Results on Balama East Graphite

| January 15, 2014 | 2 Comments

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  • Islay

    Some of the points in this announcement have a wider relevance, for the whole graphite market, and are therefore worth pointing out. They also put to rest some myths which have achieved wide circulation!

    The first makes some useful observations on the entire graphite market:

    “Although the market perception that very coarse flake graphite is the desired product from a buyer’s
    perspective, the reality is that the graphite market is relatively evenly divided by buyers requiring coarse,
    medium and fine flake graphite. Different size fractions sell at different prices. Many buyers choose to use
    finer flake due to the lower price. Syrah has graphite that ranges in size from jumbo to very fine and its
    assemblage broadly represents the market demand across the different categories of flake graphite. ”

    The second speaks to the oft-repeated theme that high-purity graphite can only be obtained with high-cost processing. It says:

    Syrah is able to upgrade its graphite concentrate to a grade of 99.9% C using a simple chemical wash
    operating at low temperature (96% TGC.
    The market for high purity natural graphite is quite small (less than 20,000 tonnes per annum) but can sell
    for up to US$5,000 per tonne. Syrah can pursue this market should it choose to do so.”

    Perhaps there is a sobering message here. If Syrah are, as they claim, able to produce 99.9% grade with low temperature, and low use of consumables, treating material with a mine-gate cost of $100 per tonne, they could make things difficult for those companies with significantly higher forecasted costs.

    What would be the impact of such a situation?

    January 16, 2014 - 8:26 AM

  • Islay

    There is a minor typo in the above post, in the section headed “High Purity Graphite”.

    “(96% TGC” should read “90 degrees C”

    Sorry about that.

    January 16, 2014 - 8:31 AM

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