Name of the Project
Munglinup graphite project.

Location
Western Australia.

Project Owner/s
Mineral Commodities Limited (MRC).

Project Description
A definitive feasibility study (DFS) confirmed MRC’s view in May 2020 that the Munglinup project will become a crucial asset in its ambition to supply natural graphite to the key high-demand battery anode markets.

The project has an ore reserve of 4.24-million tonnes grading 12.8% total graphitic carbon, supporting a mine life of 15 years, with production estimated at 52 000 t/y of 95%-purity graphite concentrate.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at a 7% discount rate, of $111-million and an internal rate of return of 30%, with a payback of 2.7 years.

Capital Expenditure
$61-million.

Planned Start/End Date
Graphite concentrate production is expected to start in the fourth quarter of 2021.

Latest Developments
MRC has reached an in-principle agreement with Gold Terrace, settling a dispute and taking full ownership of the graphite asset.

MRC holds an existing 51% interest in Munglinup, and will acquire the remaining 49% interest from Gold Terrace.

MRC will pay A$7.5-million in cash for Gold Terrace’s share. The company is in discussions regarding the securing of financing to fund the acquisition of the 49% interest in Munglinup, along with other graphite project initiatives and additional working capital.

The companies are negotiating a formal sale agreement to document the sale. The dispute stemmed from a disagreement about MRC’s right to increase its interest in Munglinup to 90%.

According to MRC, the farm-in and joint venture agreement provides for the company to increase its interest to 90% by completing a feasibility study, paying A$800 000 and issuing 30-million shares. However, Gold Terrace disputed the company’s rights, stating that its feasibility study did not comply with the requirements specified in the agreement

Key Contracts and Suppliers
Mondium – a JV between Lycopodium and Monadelphous (DFS).

Contact Details for Project Information
Mineral Commodities, tel +61 8 6253 1100 or email info@mncom.com.au.