yes saw the Mozambique 30,000 tonnes and could only "justify" it as the name plate capacity of the AMG/GK Ancuabe Mine that hasn't Produced a kilogram of graphite in years let alone a tonne.
So that's one example of the List purportedly of Production 2014 being padded by Capacity Output.
There's a real problem getting reliable data about the Natural Flake Sector/Industry. Not helped by most Producers are Private, UnListed Companies or SOE's [China and I think India and Sri Lanka]. That 4000 tonnes for Zimbabwe is probably AMG/GK Capacity Again. It has an Underground Mine there.
Anyhow purportedly some insight into AMG/GK operation will be coming out from a JV with Triton TON re Ancuabe.
@Graphite any comment about KNL Epanko Binding Tkrupp Offtake and German Gov't Loan Guarantee ? The Euro Graphite Trader who wishes to remain unnamed also with a Binder, Who do you think it is? SGL?
To Jaded,
KNL Epanko is a good graphite deposit like many of the graphite deposits in Africa and Madagascar. However KNL will have the exact same issues that most other graphite deposits are having today. They will need to sell to their 2 offtake partners (ThyssenKrupp Metallurgical Products GmbH for sales outside of Germany & Austria and to a privately owned Graphite Trading Company for their sales in Germany and Austria only.) at "current graphite market prices" delivered to European ports.
The issue KNL and all other potential graphite mines will have is the average market price today is substantially lower then what they all report. (KNL reports an average selling price of USD 1258/mt FOB port. and projected cost of USD 489/mt). It is my feeling that once the German Bank does it due diligent on the project they will confirm what all other graphite mining companies are experiencing today. (Substantially lower average market prices then the mining company's report) Thus this issue could cause the German Government to back out of the loan guarantee. This market pricing issue will only change once demand is closer to supply and then after markets prices increase enough to justify the large capital investments required (in the case of KNL they are projecting USD 56M.)
The graphite industry has all ready experienced one new graphite mine that opened and has since closed down (Flinders) and now with added supply coming from Australia and Madagascar and at the same time demand still decreasing both within China and outside of China prices continue to decline. (See IM new release below confirming the declining natural flake graphite prices)
By Shruti Salwan
Published: Monday, 31 August 2015
"Continued market pressure pushes flake graphite prices to new lows while high purity vein graphite remains steady against the downturn.
Slowing demand for natural graphite has pushed prices for flake material to new lows, with higher mesh grades failing to fetch premium rates."
The timing and market conditions do not justify investments today in new graphite mines of this capacity.
Hopefully market demand will start to increase enough from the battery market to justify some new graphite mining capacity growth (We will know what this happens since graphite market prices will have increased) and at same time not too much graphite mining capacity growth that would again add excess supply and thus cause graphite market prices to decline.
Skier
.
