EcoGraf signs GR Engineering for WA Battery Graphite Manufacturing Facility
EcoGraf (Australia) Limited (EcoGraf or the Company) (ASX: EGR) is pleased to
announce it has signed a letter of intent (LOI) with GR Engineering Services Limited
(ASX: GNG) (GR Engineering) for an engineering, procurement and construction
contract for the development of a 20,000tpa battery graphite facility in Western Australia.
EcoGraf and GR Engineering expect to enter into a formal contract for the new, stateof-the-art manufacturing facility. The parties have been working to complete predevelopment activities for the project and the Company is finalising its arrangements
with the Western Australian Government's land development agency over a proposed
6.7ha site in Kwinana.
The proposed development has a pre-tax net present value of US$141m, generating an
internal rate of return of 36.6% and annual EBITDA of US$35m based on an upfront
capital cost of US$22.8m for an initial 5,000tpa, followed by a further US$49.2m to
expand production to 20,000tpa of battery graphite (refer announcement dated 11 June
The project’s forecast economic contribution to Western Australia is significant on both
an economic and strategic front, directly employing more than 250 workers during
construction and supporting Government plans to position Australia as a global leader
in the environmentally, ethically and socially responsible manufacture of battery
Global demand for battery graphite is expected to increase by over 700% as significant
investment continues in Europe to transition towards clean renewable energy for vehicle
and industrial applications (refer: Ecograf Latest Market News Issue #5).
The Company has received strong interest from prospective customers and is making
excellent progress towards product sales and offtakes.
A video fly-through of this new facility is
available online at the following link:
Fly through video
ENGINEERED FOR PERFORMANCE
This announcement is authorised for release by Andrew Spinks, Managing Director.
courtesy of Bell Direct
( DYOR )
i hold GNG
sorry but slept in today so missed this earlier
pure speculation here but WES still has cash stock-piled recently bough Kidman Resources and is not above processing minerals and manufacturing stuff .. if this plant looks viable would WES take an interest in the facility ( or entire company )
tread carefully this is ONLY wild speculation