Thank you LJSM ..
GRG used to be our ‘little’ next door neighbour in the wing of what is now entirely the NRW building on Great Eastern Highway in Perth.
It’s grown heaps since those days, and the companies have partnered on at least one contract I think for a wannabe vanadium project, AVL, that has not moved forward.
Now competing?
…It will be interesting to see who wins here?
Top Aussie engineering firms compete for role in Siviour graphite development
Australia’s biggest engineering firms duke it out for the right to develop Renascor’s landmark Siviour graphite plant.
Special Report
2 min read
June 24, 2024 - 1:14PM
stock head
GR Engineering and Primero Group have emerged as the competitors to build the processing plant at Australia’s first major graphite project
Backed by a $185 million loan from the Federal Government’s Critical Minerals Facility, Renascor’s Siviour will be a landmark development for our battery materials sector
Early Contractor Involvement (ECI) process will enable Renascor to refine costs ahead of a decision to mine
Special Report:Two of Australia’s biggest engineering firms are duking it out for the right to develop Renascor Resources’ landmark Siviour graphite plant in South Australia, a first for the country’s battery materials industry.
Renascor Resources (ASX:RNU) is the most advanced graphite developer in the country, receiving a $185 million loan through the Federal Government’s $4 billion Critical Minerals Facility to bring its battery anode material mining and manufacturing project in the Eyre Peninsula to life.
GR Engineering and NRW Holdings owned Primero Group, both experts in the construction of critical minerals process plants, have been selected as the competitive bidders in an early contractor involvement process for the initial upstream stage of the project.
That involves the production of flake graphite concentrate at a rate of 75,000tpa and cost of $214.5m, according to a study released in August last year, making Renascor among the biggest graphite producers outside China and Africa.
The next stage, to produce purified spheronised graphite for lithium-ion batteries, would cost $394.6m with an initial production rate of 50,000tpa, before expanding as the market for the EV material grows to 150,000tpa of graphite concentrate and 100,000tpa of PSG.
But Renascor has already taken significant steps to improve the project even after the release of the study, planning to increase its production of greater than 150 micron (+100 mesh) graphite 60% from 17% to 27% of its output.
That would provide Renascor with access to industrial end users and hedge against weak periods in the battery space. Top partners
Securing two well regarded engineering and construction firms for the ECI process ensures a strong partner for Renascor’s development of the Siviour mine.
leading construction firms GR Engineering and Primero in a collaborative and competitive early engagement process is part of our commitment to accelerate the development of the BAM Project, commencing with our planned upstream graphite mining operation,” Renascor managing director David Christensen said.
“Both GR Engineering and Primero have proven themselves to be highly effective contractors through ECI processes and have each demonstrated the ability to successfully transition from ECI into EPC delivery of major projects in Australia.
“We are confident that, with the quality of the BAM Project, combined with the capability, track record and technical expertise of our ECI partners, we are well positioned to become a competitive, long-term source of secure 100% Australian made graphite.”
It comes as Renascor also works through discussions with lithium ion battery market participants on potential binding offtake agreements.
That could include equity investment in the project or company to meet the BAM project’s start up capital requirements.
The ECI process will be important there as well, with the decision to go early on the contract “intended to refine cost estimates by achieving greater definition and certainty in plant design, labour hours, bulk materials and major procurement items, whilst minimising change during execution.”
Expected to be completed last in the fourth quarter of this year, the activities to be undertaken by GR Engineering and Primero on processing and non-process infrastructure to align with advanced front-end engineering design activities.
NWH Price at posting:
$3.13 Sentiment: None Disclosure: Held
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