Some interesting points made by Mr Campos, who has been a...

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    Some interesting points made by Mr Campos, who has been a consultant to a number of graphite companies, including ASX listed SYR.

    A previous article he penned - The graphite´s Race (Another point of view) - was posted here Post #:21336626
    Plácido Campos

    Technical consultant, specialist in graphite.
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    Is that interesting to invest in Graphite Production?

    Jan 3, 2017

    An Australian investment company, studying the possibility of hiring my services as a mining consultant, questioned me something similar to the title of this short text. Graphite is my passion and I've been working with it since 1985 (32 years since I started working at Nacional de Grafite Ltda.).

    Many investors are currently looking for graphite mines because it is the mineral of the future present in clean energy processes and high technology products. On the one hand, some people are concerned there will be super production (having super production without high quality would not mean lower prices), but on the other hand, others believe consumption will triple. It's still too early to spend money based on these speculations. But some basic actions we can be attentive in. My simple answer was given based on my past and my experience.

    Discussing briefly about a graphite mine is not a simple task, but I'll try to share with you some knowledge I’ve acquired over the years.

    A good graphite mine is one that can produce at a cost of up to US$ 300.00 (FOB) per ton of an appropriate product for the current market demand.

    In order to achieve this goal, several factors interfere in the process:
    • Mostly important, graphite must be easily concentrated to 95% carbon content and get an appropriate recovery;
    • Mine must have a reserve to work on a good annual production rate (it doesn’t have to be a fanciful rate as some companies have currently designed; so, there is the return of the capital and its due return);
    • Contaminants cannot compromise the final function of the product;
    • The ore carbon content helps to reduce costs with mine, but it’s not a critical factor for success;
    • Mines must have efficient logistics system like roads and must not be too far from the port. Even so, the whole system needs to be analyzed in the total cost, once each country has different freight values;
    • Plant must have an adequate energy system. Hydroelectric power is a good cost-effective option, but firewood or gas systems are also effective for drying at a good price;
    • There must be high water availability;
    • There must be trained workmanship and good education for training new labor;
    • Crystallinity is a property that interferes a lot in the final market behavior;
    • Graphite bigger than 80# still have a good market and;
    • Mines with a higher flakes rate get their products easily placed on the market and have a higher propensity for better spheroidal materials (spheroidal is the graphite larger than 325# and lower than 100# for lithium-ion batteries). Although spheroidal material is more desirable, it generates 40% to 60% of a sub product that is difficult to put on the market, but not impossible.
    It will all depend on the combination of these main factors (it would be impossible to describe all of the involved features). Actually, harmony between these factors is required. We have once sold graphite to US$600,00 a ton.

    Since the mentioned basic items are fulfilled it is possible to obtain the expected return to the investments that companies are willing to make. Us, consultants and technicians, have to be prepared to make sure the answer to the first question is: yes, it is interesting to invest in graphite production.

    https://www.linkedin.com/pulse/inte...08#comments-6222161708778078208&trk=prof-post
 
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