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Graphite prime for mining in Pt Lincoln

Dec 22, 2014

Graphite mining is primed to return to the Eyre Peninsula after 20 years, with 260,000 tonnes of high-grade graphite discovered at the Uley site at Port Lincoln.

The exploration conducted by site owner Valence Industries uncovered the new reserve that could lead to at least six years of mining and create up to 60 jobs.

Valence reopened the site for processing of existing graphite stocks last month and will bid to recommence mining in 2015.

The new reserve, named Uley Pit 2, will bring new life to the site 20km south-west of Port Lincoln that has been subject to mining since before World War II.

The graphite being processed, and hoped to be mined, on site is not only being sold commercially but also manufactured into related products – an attribute the State Government said added significant value to the project.

Graphite and graphitic carbon is used for some batteries, carbon fibre, hybrid cars and carbon graphite bicycles.

Valence managing director Christopher Darby said the company hoped to extend the mine life even further with ongoing explorative drilling. The company owns the site and has an extensive Explorative Licence throughout the southern Eyre Peninsula.

“We are confident there is no shortage of graphite to support our production expansion plans,” he said.

“Valence Industries is unique in Australia; we have an ore reserve and a graphite plan in place with high grades of flake graphite to process.”

He said there were currently 26 positions on site and nearly all were filled by Port Lincoln locals. He predicted a significant jump in 2015.

“This will expand significantly as we move into our Phase II expansion in 2015 and grow the local workforce to a permanent crew of nearly 90.”

Valence is still undergoing a feasibility study and environmental protection controls with the government. However, the reserve and technical analysis matched with a mine plan and market and capital assessment of the project put it in good stead to gain approval.

The Government’s executive director of mineral resources for the Department of State Development, Dr Ted Tyne, said if approved the mine would bring significant benefits to the region.

“It would obviously give great opportunities for jobs but also benefits for service providers on that part of the Eyre Peninsula,” Tyne said.

“It provides an opportunity for a new era of mining graphite in South Australia, and possibly Australia.”

Tyne said although the 260,000 deposit wasn’t significant in terms of mine size, it would potentially have a big impact on the industry.

“It’s quite a small mine but important because they are selling a commodity that now has a lot of exciting uses in modern technology.”

Darby said the Phase II expansion would lead to the production of 64,000 tonnes per annum with a potential yearly income of $89 million.

 

 

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