WMN does the deal
Western Mining Network (ASX:WMN) has completed a long-awaited graphite deal in Indonesia, and in the process added an 8 million JORC resource to the slate.
While the deal had been slightly delayed, WMN told its shareholder today that the deal to acquire 100% of PT Grafindo Nusantara had been done.
The private Indonesian company had its feet on two graphite tenements in West Kalimantan, an 80.5 hectare plot for mining referred to as ‘Balai Sebut’ and a second 10,000 hectares put aside for exploration work.
This adds to its existing Tamboli permit, where it has inked a letter of intent with South Korean industrial supply company Dongsung Highchem Co Ltd, which has committed it to taking 50,000 tonnes of graphite per year from the project.
WMN said preliminary estimates from the two plots indicated that the grade of graphite could be in excess of 10%, putting it on the upper edge of graphite grades.
One of the new tenements also hosts mostly flake graphite, opening up a new downstream market for WMN.
The new tenements will form part of a scoping study WMN is currently conducting alongside further resource delineation work, with the scoping study due back in the second quarter of next year.
“The Belai Sebut mine has had considerable work done on it by the Grafindo team and when combined with the work which WMN has done in terms of developing downstream relationships gives us incredible synergies,” WMN CEO David Putnam said.
The broader game plan from WMN has been to form a joint venture in South Korean downstream player Carbon Nano-Material Technology Ltd, with WMN to take a 51% stake.
WMN has outlined its intention to build two mini-plants in Kalimantan and Sulawesi capable of producing 5 tonnes of graphite per day.
The plants will reportedly be capable of producing varying degrees of graphite, with low grades going for less than $US1000 ($A1408.04) to $10,000.
The lower grade graphite will simply require more conventional beneficiation techniques such as crushing, milling, agitation, and floatation.
The higher-end processing is planned to be farmed out to its partners.