Graphite not a commodity bubble says Kibaran Resources Equity market concerns that the expansion of the graphite sector has been too rapid has been dismissed by ASX-listed graphite junior, Kibaran Resources.
Kibaran Resources is the owners of the near-term US$77.5 million Epanko graphite mining venture in Tanzania.
MD Andrew Spinks, said graphite was “certainly not a bubble”.
“Graphite is set to be a major global commodity – it is going to be one of the raw materials of the future - a major commodity - so talks of bubbles are premature."
“Importantly, as the new era high graphite consumption global battery market evolves, we will see a series of new gigafactories driving future graphite demand.
“These will be dominated by emerging plants in Japan and South Korea in addition to existing and new gigafactory developments in the traditional global leading graphite supply and graphite product market of China.
“Anyone who doesn’t believe there is a future demand for graphite is ignoring the swathe of emerging graphite reliant technologies,” says Spinks
The future graphite market is not just about batteries – it includes historic traditional uses but adding on its new uses in electric vehicles, fuel cells and energy storage systems.
Kibaran’s confidence is well grounded with the Perth-based company attracting takeooff agreements for 100% of its planned 40 000 tpa concentrate output from Epanko.
These off-take deals include Japan’s Sojiz Corporation, Germany’s Thyssenkrupp and a major European graphite trader.
The company’s debt funding discussions for Epanko are well advanced with current due diligence by Germany’s KfW-Bank for a $40 million debt facility and a $30 million facility from Africa’s Nedbank investment arm.
Spinks says Epanko could be in production within nine months of mine construction funding being finalised.
