Renascor Resources (ASX: RNU) has announced significant improvements to its Siviour Graphite Project in South Australia, stemming from Early Contractor Involvement (ECI) submissions. The competitive ECI process with EPC contractors, including GR Engineering Services Limited and Primero Group Limited, has matured the engineering of the mineral processing plant. These advancements promise increased graphite production, reduced operating costs, and enhanced graphite grade and recovery.
Specifically, design improvements to the comminution, flotation, and re-grind circuits are projected to increase the production of graphite with size fractions greater than 150 microns (+100 mesh) by approximately 60%, from a projected 17% to 27% of total production. Furthermore, the company anticipates reduced operating costs through the elimination of higher-cost reagents and lower overall reagent consumption in the flotation circuit. Targeted graphite grade is expected to improve to 95.3% Carbon, with a recovery rate of 96.7%, exceeding the 2023 Battery Anode Material Definitive Feasibility Study (2023 BAM Study) targets of 95.0% grade and 95.5% recovery.
While the capital cost estimate for the mineral processing plant has increased by 4.7%, or 2.8% of the overall pre-production estimate of $214.5 million, the cost increase is primarily attributable to design improvements, inflation, and foreign exchange assumptions. Renascor structured the ECI process to select a preferred contractor for the mineral processing plant under an executable EPC contract, considering price, construction schedule, commercial delivery models, and contractor incentivisation structures. Renascor is in a strong position to advance the BAM project, with a cash balance of approximately $108 million (as of 31 December 2024) and a conditionally approved a $185 million loan facility from the Australian Government’s $4 billion Critical Minerals Facility.
