Export Finance Australia (EFA), Australia’s export credit agency, has approved a loan facility of A$185m to accelerate the development of the upstream graphite concentrate operation at Renascor Resources’ Siviour graphite project in South Australia.
This financial support for the vertically integrated battery anode material manufacturing operation (the BAM Project) has come from the Australian Government’s A$4bn Critical Minerals Facility, which is administered by the EFA.
The loan consists of a A$150m term facility and a A$35m cost overrun facility.
These funds will be used by the company to establish the graphite concentrate operation and a subsequent purified spherical graphite facility, positioning Australia as a key player in the electric vehicle battery supply chain.
Renascor released the Siviour Battery Anode Material Study on 8 August 2023, outlining the expedited start-up of the BAM Project.
The move is expected to give Renascor an early-mover advantage by providing a reliable supply of graphite concentrates from Australia.
The BAM Project will utilise the Siviour Graphite Deposit, the largest reserve outside of Africa, and a processing facility in South Australia.
Renascor noted that its eco-friendly purification process will be used to manufacture purified spherical graphite.
Renascor is advancing engineering designs for the mineral processing plant and discussing binding offtake terms with potential partners.
The loan facility follows in-principle finance support from the EFA, with the drawdown subject to customary conditions and completion of due diligence.
EFA's due diligence on the graphite concentrate operation has identified no fatal flaws. Renascor and the EFA will now work towards finalising due diligence and documentation.
Meanwhile, Alpha HPA has secured A$400m from the Australian Government for a high-purity alumina processing facility in Gladstone, with conditional approval for A$320m in project loans and an A$80m cost overrun facility.
Renascor managing director David Christensen said: “We are delighted to have received confirmation that the A$185m conditionally approved loan from the Critical Mineral Facility is approved to support our strategy of fast-tracking the construction of the upstream portion of the BAM Project.
“Our phased development strategy provides us with an early-mover advantage by entering the market with reliable supply of natural graphite concentrates from Australia, an IRA [Inflation reduction Act]-aligned jurisdiction.
“The strategy allows us to generate early cash flows, accelerate production of graphite concentrates, continue to build valuable offtake relationships with leading anode suppliers, operate and optimise the PSG Pilot Plant and PSG product qualification, and de-risk the subsequent development of the downstream PSG processing facility.”
