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International Graphite Ltd

  • ASX Code: IG6
  • Market Cap: $12,789,971
  • Shares On Issue (SOI): 199,843,296

International Graphite (ASX: IG6) Secures Land for Collie Micronising Facility

International Graphite Limited (ASX: IG6) has settled on the purchase of 6,000 square metres of industrial land in Collie, Western Australia, a tangible milestone toward constructing Australia’s first commercial graphite micronising facility. The International Graphite Collie Facility represents a critical advancement in domestic battery materials processing capability, addressing a significant gap in Australia’s graphite value chain.

The acquisition comprises three lots in the Collie Light Industrial Area from DevelopmentWA, the Western Australian Government’s central development agency. The site sits immediately opposite the company’s existing R&D facility, which houses Australia’s first pilot graphite micronising plant. This strategic co-location is intended to enable knowledge transfer and operational synergies between pilot and commercial operations.

Andrew Worland, Managing Director and Chief Executive Officer, stated, “The Collie Micronising Facility is coming online at a pivotal moment for global graphite supply. Interest from manufacturers has been strong, with many seeking reliable alternatives to tenuous overseas supply. Several companies are now assessing our products.”

Construction preparations are progressing across multiple workstreams. Major plant and equipment items have been ordered, the essential power supply has been approved by Western Power, and a development application is in the final stages with the Shire of Collie. Approval from the Shire will enable construction to commence on the new site.

Furthermore, the land acquisition cost aligns with the capital cost estimate published in the company’s Front-End Engineering Design (FEED) Study. This pricing consistency demonstrates effective budget management and removes a potential source of cost overrun risk for investors monitoring project execution.

Over the past three years, the Western Australian Government has provided a $12.5 million package of grants to advance the development of International Graphite’s Collie and Springdale projects. This substantial state backing validates the strategic importance of establishing domestic graphite processing capabilities.

Development Milestone Status Details
Land acquisition ✓ Completed Three lots (6,000 sqm) settled
Power approval ✓ Secured Western Power approval granted
Equipment ordering ✓ Underway Major plant items ordered
Development approval Final stages Application with Shire of Collie
Construction commencement Pending Subject to development approval

What makes the International Graphite Collie Facility strategic?

The International Graphite Collie Facility will be Australia’s first commercial-scale graphite micronising operation, transforming how the nation participates in the battery materials supply chain. Currently, Australia produces graphite concentrate but lacks commercial facilities to process it into battery-ready materials, forcing domestic miners to export raw concentrate for overseas processing.

Micronising is the process of reducing natural graphite flake size to precise specifications required for battery manufacturing. Battery manufacturers require specific particle sizes and purity levels that can only be achieved through controlled processing. The existing Collie R&D facility operates at a pilot scale for testing and validation, whilst the new commercial facility will deliver production capacity, enabling domestic value-add.

This processing step sits between mine concentrate production and downstream purification processes in the graphite-to-anode supply chain. For investors, the International Graphite Collie Facility addresses a critical bottleneck, creating margin capture opportunities through value-added processing rather than selling raw materials.

Why has International Graphite selected Collie for its commercial facility?

Collie is recognised as a WA Super Town, a designation identifying locations earmarked for major future growth and significant industrial activity. This classification signals long-term government commitment to infrastructure development and economic support for the region.

Co-location with International Graphite’s existing R&D facility provides substantial operational advantages. The proximity reduces technical risk during scale-up by allowing immediate access to pilot plant learnings and experienced personnel who understand the specific processing requirements.

Recent industrial diversification in Collie demonstrates the region’s transformation into an advanced materials hub, with developments including a pilot magnesium production plant and plans for a low-emissions steel mill. This emerging industrial cluster suggests reliable long-term infrastructure availability and a developing local skills base.

The $12.5 million state support package demonstrates alignment with Western Australia’s critical minerals policy objectives. For investors, the government support package reduces execution risk, whilst the strategic location provides infrastructure advantages.

“The State Government has taken a very strategic position and has played a key role in the progress we have made to date. Premium land in WA’s south-west is becoming scarce. In developing this site we expect to generate value well above the capital invested,” said Andrew Worland.

How will the facility progress to construction?

The company is working with designers to finalise the detailed facility design in preparation for major plant and equipment items already ordered. This parallel progression of design and procurement demonstrates confidence in the technical specifications and accelerates the path to construction completion.

Regulatory progress shows the development application is in its final stages with the Shire of Collie. With most major approvals secured, this remains the final regulatory step before construction can commence. This approach reduces the overall timeline by eliminating sequential delays between phases.

Customer engagement is already underway, with management noting several companies are assessing International Graphite’s products. This forward indicator validates market demand ahead of production commencement, reducing offtake risk.

Workstream Status Investment Significance
Land acquisition ✓ Completed Physical site secured, capital cost met
Power supply ✓ Western Power approval Essential infrastructure confirmed
Equipment procurement ✓ Orders placed Long-lead items secured, timeline de-risked
Detailed design In progress Finalising specifications for construction
Development approval Final stages (Shire of Collie) Final hurdle before construction can begin
Customer engagement Underway Validates market demand, reducing offtake risk

With the land secured and key approvals in place, International Graphite is positioned to advance the Collie facility towards construction. For investors, this progress represents a significant de-risking of the project timeline and budget. The final development approval from the Shire of Collie remains the key catalyst for commencing work on what is set to be Australia’s first commercial graphite micronising operation.

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