The battle for the pole position in graphite mining is opened
09.07.2012/70/XNUMX Düsseldorf Institute for Rare Earths and Metals eV - With general conditions similar to those for rare earths, numerous junior exploration companies are competing for the best positions in graphite mining. XNUMX% of global graphite production currently comes from China. Due to new technologies in the field of lithium-ion batteries, this mineral is increasingly required by the high-tech industry.
While the world is still grappling with China's dominance in graphite production, the exploration of graphite by Australian companies at home and abroad is increasing. Graphite is one of the critical minerals that is characterized by a high demand. Australian mining companies are following in the footsteps of Canadian junior companies and have continued their exploration activities for graphite over the past few years to ensure that reliable Western resources of this mineral will continue to be available in the near future.
The graphite production is mainly distributed to China, India and Brazil. China tops the list with more than 70% of global graphite production. There are fears that China may impose an export quota on the mineral, as it would for rare earths. In Canada, Ontario Graphite is expected to be the first Canadian and first graphite producer in the Western world for a long time. It is believed that Northern Graphite will follow next.
The global demand for graphite began to increase slowly during the second half of 2009, and continued steadily throughout the years from 2010 to 2011. US geological surveys stated, "This increase results from the improvement of the global economic situation and its impact on the graphite industries."
Australian graphite junior company in the early stages
The development of graphite is becoming increasingly relevant in Australia. Yet, companies are still in the early stages of exploration and drilling, lagging behind their Canadian counterparts. The exploration boom, which leads to large profit sharing, is fueled by the assumption that demand for graphite will increase significantly and the current supply is insufficient.
Graphite prices exceeded 1.300 USD / ton in the late 1980 years, but fell to 1990-600 USD / ton in the 750 years as Chinese producers flooded the market. Northern Graphite announced that graphite prices, which are dependent on the size and purity of the flakes, recently exceeded 3.000 USD per tonne. For large flakes (+ 80 mesh), 94% carbon variety high prices have to be paid.
The worldwide demand for graphite is about 1,14 million tons, evenly distributed between large flake graphite and amorphous graphite. The latter is used for industrial purposes. Some estimates of graphite demand are 1,6 million tons in 2020 year.
Economic and geopolitical concerns
The Australian economy grew by 1,3% in the first quarter of this year. This is more than double the analysts' predicted 0,5%. The country's GDP was 2011 at 1,5 trillion USD. While Australia's service sector accounts for more than two-thirds of GDP, about 10% is accounted for by the mining industry.
The country ranks 17 of the strongest economic powers in the world in terms of GDP and has experienced uninterrupted financial growth over the last two decades. Even during the global financial crisis, which wiped out nearly all of the growth of the Western world, the Australian economy continued to grow. This is largely explained by the growth of the resource sector and the fact that China has become Australia's largest export market in 2009.
Australia can be divided into East and West due to the use of land and economic priorities. The eastern part of the country is home to most cities and much of the service sector and the financial industry. The western part is dominated by the natural resources sector, which includes iron, ore, gold, oil and natural gas.
Promising graphite companies in Australia
Recently, Buxton Ressources (ASX: BUX) entered the graphite business. The company announced last month that it plans to acquire a share of 85% of the Yalbra Graphite Project, conducted by the Montezuma Mining Company (ASX: MZM), in western Australia. Buxton, who is an explorer of gold, base metals and iron ore, said that "they look forward to starting work in this area as soon as possible."
In recent months, three Australian companies, Archer Exploration (ASX: AX), Monax Mining (ASX: MOX), and Syrah Resources (ASX: SYR) have reported positive results for graphite exploration activities.
Syrah, headquartered in Melbourne, doubled its overnight share price last month after announcing the results of a single hole in its Balama project in Mozambique. Monax said last month that the latest surface samples from its Waddikee project "reinforce the company's belief that the project has the potential to create a new graphite province." In May, Monax announced geochemical results from four project samples given.
Archer said last month that it is pursuing the rapid development of Campoona to produce high-purity graphite. A sample from a borehole in Campoona yielded large, medium and fine flake graphite, but the proportion of medium flake graphite predominated.
Investigator Resources (ASX: IVR), which is primarily a Silver Explorer, has recently added graphite as well. A preliminary assessment of the graphite potential within the Company's regional holdings identified several promising areas where Graphite shale was previously exposed during previous drilling.
The company Kibaran Nickel (ASX: KNL) has found graphite potential within their project in Tanzania. Castle Minerals (ASX: CDT), a gold miner with projects in Africa, confirmed in early May that carbon samples within the Wa project in northwest Ghana have revealed significant zones of high-grade graphite.
Promising graphite companies in Canada
As a listed investment company, Zimtu Capital Corp. recognizes (ZCT1 or A0RDR9) anticipates early commodity market trends and invests exclusively in emerging exploration companies. Because of new applications of graphite, especially as an anode material in lithium-ion batteries, Zimtu Management has already recognized at the end of 2010 that the raw material must be completely re-evaluated. Since then, Zimtu has been intensively involved in the subject of graphite and, with his network of geological experts worldwide, has been looking for promising graphite projects. Meanwhile, Zimtu, with nine graphite properties, has successfully participated in seven different graphite explorers, such as Big North Graphite Corp., Lomiko Metals Corp. and Standard Graphite Corp., involved.
The elements of minerals and ores are the focus of van Beuren & Rosenthal Inc. (A1JEZV). The company locates, explores, mines, buys and sells minerals and mines in this area worldwide. Thanks to an organically grown network of contacts in politics, finance, geology, mineralogy and mining, van Beuren & Rosenthal Inc. is the perfect partner for every early stage company in mining. Its management consists of a highly specialized team of geologists, mineralogists, lawyers, business administrators and analysts. Van Beuren & Rosenthal supports a Canadian graphite project, which will start production in 2013/2014.
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