Graphite is not a rare resource. It is in great abundance with...

Graphite is not a rare resource. It is in great abundance with many hopefulls looking to develop resources all over the world.

The key to successfully developing a graphite business that is sustainable is to establish a vertically integrated operation to deliver the best product quality/price nexus for the end consumers, which AS has been progressing on for a long time. The keys to the quality/price mix is a matrix of products positioned for different end use markets, to have a low cost for ore extraction and processing and to produce the best value in each downstream differentiated market segment, which is what they are working on.

They are off to a good start with a largescale quality resource that will have comparatively low extraction costs with low stripping ratio and labour costs. They are also off to a good start with developing processing technology that is cost competitive and having it protected in key countries. Avoiding China is more sensible compared to other developers who have exposed themselves to major geopolitical risks.