MRL Corporation to start commercial production of spherical graphite
MRL Corporation, an Australian mining company exploring graphite in Sri Lanka, is to start commercial production of spherical graphite for use in batteries next year – based on tests being carried out currently, Peter R.Youd, Executive Director, Chief Financial Officer and Company Secretary told Business Times.
The company is sending bulk graphite samples from its Aluketiya and Pandeniya high grade graphite projects in Sri Lanka to Wuhan University of Technology for Metallurgical testing, he revealed in an email communication.
If the metallurgical tests are positive, the company would be able to start ramping up commercial production of spherical graphite for use in batteries later next year, he disclosed.
The company is expected to receive these reports within six weeks to determine the suitability of converting MRL’s high-grade vein graphite to premium-priced spherical graphite used in batteries, Mr. Youd noted.
If these confirm that MRL’s graphite is suitable, he said the company will issue samples to major battery manufacturers with the objective of securing offtake agreements.
Aluketiya produced high-grade graphite for several decades until the operation was stopped in the 1960s while Pandeniya contains numerous historical adits, shafts and remnant graphite dumps.
The company holds a 100 per cent interest over four projects known as Warakapola, Pujapitiya, Palinda Nuwara and Hikkaduwa. The projects cover historical workings within a known graphite province that produced large volumes of vein or lump graphite from the 1890s to the 1930s.
The MRL has spent approximately US$1 million on exploration activities. This has been funded by way of investment from the parent company, MRL Corporation Ltd which has raised funds from its shareholders on the Australian Securities Exchange (ASX) to enable this investment in Sri Lanka, Sri Lanka currently exports 4,000 metric tons of graphite every year, a small amount compared to the 960,000 tons of graphite exported by the world’s largest exporter of the mineral – China. However, Sri Lanka takes the lead when it comes to purity.