The Australian Government has conditionally approved a loan facility of A$185 million (the Loan Facility) to fund the development of Renascor Resources Limited’s (ASX: RNU) Siviour Graphite Project in South Australia.
“We are extremely pleased to have received conditional approval from the Australian Government for this project-enabling loan facility, and to receive such approval under the Australian Government’s $2 billion Critical Minerals Facility,” Renascor’s Managing Director, David Christensen, said.
“The Siviour Graphite Project represents an important opportunity for Australia, and South Australia in particular, to develop a world class, globally competitive downstream processing capability in a critical mineral that is fundamental to the development of the electric vehicle revolution.
“The support from the Australian Government and Export Finance Australia (EFA) is a significant and tangible endorsement of this opportunity and Renascor’s ambition to become a world-leading supplier of Purified Spherical Graphite.
“We look forward to working closely with EFA to satisfy the conditions of approval and to conclude all required facility documentation.”
The Project will combine:
• the Siviour Graphite Deposit in South Australia, the largest reported graphite Reserve outside of Africa; and
• a state-of-the-art processing facility in South Australia to manufacture Purified Spherical Graphite through Renascor’s eco-friendly purification process.
Total capital expenditure for the Project has been estimated to be A$204 million,
Graphite is now seen as a critical component in Lithium-ion Batteries (LiBs) and Electrical Vehicles (EVs).
The Renasor Loan, and a similar one made to EcoGraf Ltd, are worth a total of #239 million, and the first loans under the Federal Government’s recently established Critical Minerals Facility.
Federal Minister for Trade, Tourism and Investment Dan Tehan said the projects will promote Australia as a trusted supplier of critical minerals to the world.
“The Government’s support for these projects through the $2 billion Critical Minerals Facility is a clear demonstration of our faith in the potential of Australia’s critical minerals sector,” Minister Tehan said.
“At a time of booming global demand for smartphones, electric vehicles and other technologies this commitment from the Australian Government positions Australia strongly into the future in the critical minerals sector.”
Minister for Resources and Water Keith Pitt said the loans will pay long term dividends to the national economy.
“The potential of the critical minerals sector is enormous and these loans will support two significant projects that will expand Australia’s footprint and reputation in this rapidly growing industry,” Minister Pitt said.
“It will build on a resources sector that already provides over 365,000 direct jobs for Australians and is forecast to contribute a record $379 billion in exports this financial year.”
EcoGraf’loan of up to US$40m will assist the company to undertake a planned expansion of its Australian Battery Anode Material Facility.
The facility is to be constructed in the Rockingham-Kwinana Strategic Industrial Area, 30km south of Perth in Western Australia and will utilise the company’s environmentally superior and cost-effective purification technology to produce high quality battery anode material using natural flake graphite for export to Asia, Europe and North America.
In December 2021 EcoGraf announced the Australian Government, through IP Australia, has confirmed acceptance of the Company’s patent application, which includes the use of its unique purification process to recycle battery anode material generated from lithium-ion battery production processes and end-of-life batteries.
