Sarytogan Graphite (ASX: SGA) says micro-crystalline product from its Kazakhstan project has proven to be “significantly” more superior than similar North American graphite for use as a lubricant in traditional industry applications.
Testing by the company’s American technology partner found that micro-crystalline graphite from the operation has an importantly lower coefficient of friction than North American amorphous graphite of a similar particle size.
Late last year, bulk concentrate from the Sarytogan graphite project was produced at between 80 and 85 per cent carbon, with a percentage of the product set to be purified downstream for use in advanced industries, including the battery and nuclear sectors. However, in a bid to maximise the proposed production capacity of its Kazakhstan project, the company also plans to sell the concentrate “as is” to traditional markets, such as lubricant for industrial and military applications.
The key to maximising future economic returns is to get as many of these units of carbon into as many markets as possible.
Sarytogan Graphite managing director Sean Gregory
The latest testwork was carried out in accordance with the American Society for Testing and Materials (ASTM) standard guide for measuring and reporting friction coefficients. The test machine measured the coefficient of friction and temperature over time by rotating a spindle containing the sample while applying a constant pressure.
The company recently delivered a high-grade mineral resource at its Kazakhstan project of 229 million tonnes at an impressive 28.9 per cent total graphitic carbon (TGC).
The key to maximising future economic returns is to get as many of these units of carbon into as many markets as possible. We plan to deliver high-purity graphite into advanced industrial markets for batteries and nuclear use, following customer qualification. Today’s result demonstrates that the precursor Sarytogan Micro-Crystalline 80-85% C graphite product is suitable in traditional industrial applications, providing an important base load for the project.
Sarytogan Graphite managing director Sean Gregory
Just two days ago, the company confirmed it had recorded “exceptional” endurance in the long-cycle performance of the first lithium-ion batteries using uncoated spherical purified graphite (USPG) from its Kazakhstan project. According to its test results, the coin-cell batteries have continued to charge and discharge more than 140 times through a 10-hour cycle and retained 97.3 per cent of the charge capacity after 100 cycles.
Sarytogan is looking to create three revenue streams, in relatively equal portions. The first is the microcrystalline graphite that is to be sold for use in traditional industries including refractories, crucibles, foundries, pencils and lubricants.
The remaining two thirds will be split and made available to produce uncoated spherical purified graphite (USPG) for lithium-ion battery anodes, in addition to ultra-high-purity fines (UHPF) for advanced industrial uses including the nuclear industry and as a cathode activity enhancer for batteries.
According to research by Benchmark Mineral Intelligence, natural graphite demand is expected to exceed supply next year – the first time the market will have been in deficit since 2017. The industry analyst says the diminishing surplus is the product of insufficient supply growth, which it forecasts will be outstripped by flake graphite demand growth of 18 per cent this year.
Sarytogan believes the vulnerability of the battery supply chain is now highly-exposed following China’s decision to restrict its graphite product exports from December last year.
Now, the confirmation of another potential market for the company’s graphite will add more positive figures to its upcoming prefeasibility study (PFS), which is set to be released as soon as next quarter.
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