First Graphite promotes Sri Lanka’s vein graphite for energy saving gadgets
First Graphite (FGR), a listed company in Australia that sources premium quality graphite from Sri Lanka, will be entering the international market as a supplier of rarest and most valuable vein graphite which is used as one of the raw materials in the manufacture of the best and most innovative energy saving technology products in the world.
The company has entered into an agreement to acquire graphite from the state-owned Kahatagaha Graphite Lanka Ltd (KGLL) for a 2-year period to purchase premium quality graphite at a rate of up to 1000 tonnes per annum, Peter R. Youd, Executive Director, FGR’s Chief Financial Officer and Secretary told the Business Times.
It is now conducting underground mining operation in Sri Lanka which covers an area of approximately 40,000 hectares, to extract high grade, crystalline vein graphite, which is unique to the country. It then transforms the material into graphene.
Sri Lanka is the only country in the world that produces commercially viable vein graphite for export.
Graphene is used for smartphones, portable devices and electric vehicles and the demand for graphite is expected to rise as lithium batteries, fuel cells, nuclear and solar power devices gains momentum in the coming years.
The company is aiming to develop a graphene-oxide based super capacitor for application in higher-performance batteries, after securing vein graphite feedstock supply through this agreement with KGLL.
FGR is also seeking to raise US$3 million in funds from investors to develop a new type of graphene-based material suitable for battery technology applications, the company announced to the Australian bourse recently.
The final aim of the company is to commercialise graphene-oxide super capacitor energy storage technology with this wonder material graphene being used in vehicle tyres, with one estimate being that the demand for the material will be almost seven times the present world production.
“The company has also undertaken to work with KGLL toward reasonable value addition to Sri Lankan graphite outside the Kahatagaha Mines premises,” Mr. Youd revealed in an email to the Business Times.
In recent years, several other parties have approached KGLL with a view to either buying material or entering into some sort of joint venture arrangement, he said, adding that some have provided orders, only to renege when delivery and payment was due, leaving KGLL with unsold product.
However, FGR is the first party to actually make purchases of a material value from KGLL and therefore support their ongoing operations, he disclosed.
The purchase of nearly US$150,000 worth of graphite from KGLL in recent months evidenced the company’s seriousness, and gave the KGLL board confidence to enter into the new arrangement with First Graphite, he added.
“Since the execution of the agreement, a further two orders have been placed, supported by bank issued Irrevocable Documentary Credits, taking the purchases to over US$200,000”, he revealed.
Through its subsidiary company, MRL Graphite (Pvt) Ltd, FGR continues to explore and develop its graphite projects in Sri Lanka.
In late 2015 the company imported a modern diamond drill rig into country and it has been continuing to train a Sri Lankan crew of five in its operation. Drilling activities have centred on the company’s projects in Aluketiya and around the Warakapola area.
The company is also developing three mine shafts, two at Aluketiya (Shaft’s H and J) and one in the Warakapola area.
Development of the shafts has not been an easy task, with difficult ground conditions at Aluketiya making the progress on Shaft H slower than the company had anticipated, he said.
While developing these shafts the company has maintained a very high standard of operational health and safety and continues to train its employees in all aspects of occupational health and safety systems, he emphasised.
Global sales of graphite were US$ 14.7 billion by the end of 2016, witnessing a Y-o-Y growth of 9.0% over 2015 and it is expected to grow at a compounded annual growth rate of 4 per cent from 2016 – 2021.