The support that IG already has from govt is significant. This...

The support that IG already has from govt is significant. This really is a fantastic deal for Comet. Phil mentions Springdale won't be operational until 2024, something I believe would have taken much longer under Comet who is less focused on and has less expertise in graphite. The fact that IG will generate revenue in 2022 through imported feedstock will mean Comet will benefit from this deal as early as next year as oppose to however long (if ever) this would have happened under Comet. And as others have pointed out, this is without us lifting a finger!

More from IG:

As you may be aware, IG has recently entered into an agreement to acquire the Springdale graphite resource near Hopetoun in WA from Comet Resources, subject to completion of the listing process and other conditions, most of which have already been met. The plan is for the graphite resource to be mined in Hopetoun and processed to produce a concentrate. The concentrate will be trucked to Collie in the south west of WA where it will be downstream-processed to produce Battery Anode Materials for the massively growing lithium ion battery market. This will provide WA with a strategic vertically integrated graphite processing industry from mine to customer, independent of reliance on other countries. We already have a facility in Collie with pilot Battery Anode Material processing capability operational in the first quarter of 2022, and plan to have production facilities in place in Collie during 2022 initially using imported feedstock. The Springdale operation should be operational by 2024 which will then feed an expanded Collie downstream processing facility.

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A high level Government contingent, led by Western Australian Premier Mark McGowan, made a fleeting visit to the South West last month to talk about plans for the region’s future.

As a representative of the region’s next generation industries, International Graphite was invited to the event which provided an ideal opportunity to update the Premier, and senior Ministers Bill Johnston and Alannah MacTiernan, about the company’s progress.

The news that IG has secured its own graphite resource, subject to completion of its agreement with Comet Resources, and is set to become the first vertically integrated graphite production facility with sovereign operations located entirely in WA, has generated significant excitement.

The Premier was enthusiastic about the potential for our business to put WA on the world stage when it comes to the multi-billion dollar global etransport and renewable power storage markets, as well as the bright prospects it creates for local employment in Collie, as the energy-focused economy transitions from its traditional reliance on coal.