A 33kV electricity infrastructure upgrade by SA Power Networks is on its way
Work to begin next quarter
Siviour is the world’s largest proven graphite reserve outside Africa.
Special Report: Under an agreement with SA Power Networks, Renascor Resources will upgrade the distribution network for its Siviour graphite mine and processing plant, part of the company’s broader Battery Anode Material (BAM) project.
Renascor Resources (ASX:RNU) has run the numbers and believes the 16.8Mt @ 8.2% for 1.4Mt contained graphite Siviour deposit – one of the largest ex-Africa – can deliver high-purity spherical graphite to the market at a run rate of 140,000tpa for the next 40 years.
The Siviour graphite project compared to other known deposits. Pic: Supplied (RNU)
Accelerating upstream development
The connection agreement will see SA Power Networks will upgrade its existing substation ~25km from Siviour by constructing a new 33kV voltage regulator and transformer and upgrades to portions of the existing overhead powerline network.
The move follows RNU’s previous move to procure long-lead capital equipment for the upgrades to connect to the existing electricity grid. SA Power Networks says it will kick off works next quarter.
The upgrade is part of a strategy to accelerate upstream development and to minimise the construction period for the planned mining and processing operation.
RNU managing director David Christiansen says the growth of the lithium-ion battery and anode markets continues to put pressure on the overall graphite market to meet increasing demand, with the trend supporting the need for large, low-cost graphite mines like Siviour.
“Our agreement with SA Power Networks to upgrade the existing electrical distribution network for Siviour permits us to move forward on a key critical path workstream for the project, as we seek to minimise the length of the construction phase for our planned Siviour mine to permit Renascor’s new supply to enter the market in alignment with forecasted near-term shortages of graphite,” he says.
Siviour’s development
Phase 1 is a downstream operation to produce purified spherical graphite, which includes advancing more detailed engineering and design work to optimise the time period for the construction phase.
On top of this, design work on the tailings storage facility, desalinisation plant and accommodation.
Work programs on the horizon include geotechnical assessments within the mineral lease to support the construction of the processing plant. Pending approval, further drilling is also planned for mine pit extensions.
On the search for finance partners, RNU has tapped OEMs and financial groups in the battery supply chain space, including existing and potential offtake partners and equity investors, to help meet the BAM project’s capital requirements.
This article was developed in collaboration with Renascor Resources, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
The post Renascor Resources is getting a power connection upgrade for its monster Siviour graphite project appeared first on Stockhead.
