AMN - TANZANIA: IMX validates graphite strategy

IMX Resources boasts that its strategy to pursue the lucrative expandable graphite market has been validated after end user testing confirmed the outstanding suitability of the flagship Chilalo graphite project in Tanzania to supply this high growth sector.

Feedback from IMX’s targeted end user, with whom the company is in advanced discussions, confirmed exceptional expansion rates exceeding 1000 times, indicating that Chilalo graphite is ideally suited to a range of high-value and in-demand products. 

In particular, Chilalo coarse flake graphite in excess of 180 micron has been identified as suitable for the production of high value expandable graphite products such as graphite foil, graphite paper, knitted tape (high temperature and fire resistance), narrow flexible graphite strip, and other graphite based products requiring high rates of expansion.

Chilalo fine and medium flake graphite (<180 micron) has been confirmed as suitable for application in flame retardant building products, where lower rates of expansion are required. The high expansion rates mean that for the same quantity of graphite, Chilalo produces a higher volume of expandable graphite meaning the product can attract a premium due to a higher “value in use”. 

IMX managing director Phil Hoskins said the results opened up enormous new market opportunities for Chilalo graphite and reduced IMX’s reliance on the market to supply graphite into lithium-ion batteries.

“Coarse flake graphite is theoretically suitable to many different end uses including refractories and spherical graphite, but in the absence of costly chemical or thermal purification, maximum revenue is achieved selling it into the expandable graphite market. However, not all graphite expands and some graphite expands at a higher rate and it is therefore pleasing that our targeted end user has confirmed Chilalo’s world-class expansion rates and validated the Company’s strategy of targeting this high growth market. 

“Chilalo’s finer flake product is still expected to be suitable for the manufacture of spherical graphite for lithium-ion batteries, ensuring the project maintains exposure to this rapidly growing market segment. However, spherical graphite is exclusively produced using fine and medium flake graphite (<180 micron) which is likely to be an oversupplied market given we understand China has approximately 800,000 tonnes/year idle capacity for finer flake graphite and Syrah Resources plan to produce over 300,000 tonnes/year, the majority of which is finer flake targeting the battery market. Having received confirmation that the rate of expandability of Chilalo graphite at finer flake sizes is suitable for the production of expandable graphite, the company has product optionality in

that we can choose to supply either the battery market or the rapidly growing expandable graphite market where its use in flame retardant building materials is expected to offer outstanding opportunities for IMX.” 

Feedback from end users is that expansion ratios from Tanzanian graphite are generally known to exceed those from Chinese domestic graphite. These latest test results by the company’s targeted end user, a major Chinese consumer, have placed Chilalo product number one for expandability compared to both Chinese domestic and international graphite they have tested. In recent years, demand in China for larger flake graphite has increased and the domestic supply of the required quantity and quality of such graphite is insufficient to meet this demand. IMX is ideally placed to take advantage of this opportunity to supply quality coarse flake graphite into China. 

www.imxresources.com.au 

News courtesy of International Mining