International Graphite Wins Building Permit for Collie Micronising Facility

Building permit unlocks construction start and next grant tranche at Collie Micronising Facility

International Graphite Limited (ASX: IG6) has received a building permit from the Shire of Collie, enabling earthworks and civil construction to commence at its Collie Micronising Facility. The permit marks the achievement of Milestone 2 of six under the $4.5 million Western Australian Government Collie Industrial Transition Fund grant, triggering the next tranche drawdown.

Builder Prosser Built has confirmed a Final Tender Price within 0.1% of the budget prepared for the 2025 Front-End Engineering Design (FEED) study, signalling disciplined cost management as the project moves into the ground. Mechanical completion is targeted for Q2 2027 within a total capital cost estimate of $8.0 million, and the facility is set to become Australia’s first commercial graphite micronising operation.

Project milestones and what’s been achieved

Grant milestone progression

The $4.5 million Collie Industrial Transition Fund grant is structured across six milestones, with each milestone achieved triggering access to the corresponding tranche of grant funds. The receipt of the building permit from the Shire of Collie confirms Milestone 2 as complete.

Key achievements confirmed at this stage include:

• Building permit received from the Shire of Collie
• Final Tender Price from Prosser Built confirmed within 0.1% of the 2025 FEED study budget
• Earthworks and civil construction approved to commence
• Grant tranche drawdown enabled as a direct consequence of Milestone 2 achievement

Budget discipline as a confidence signal

The confirmation of a Final Tender Price within 0.1% of the 2025 FEED study budget is a standout data point for cost-conscious investors. For a project of this nature, arriving at a builder-confirmed price that closely mirrors an independent engineering estimate signals that the planning process was rigorous and that cost assumptions were grounded in real market conditions.

It also reduces one of the more common early-stage risks for construction projects: the gap between estimated and tendered costs. With this alignment established ahead of ground break, the $8.0 million capital cost estimate carries greater credibility as construction progresses.

What is graphite micronising and why does it matter for investors?

Graphite micronising is the process of milling raw graphite into fine particle sizes suited to specific industrial and battery applications. The output, known as micronised graphite, is a value-added product used across applications including lubricants, refractories, battery anodes, and specialty coatings. The finer and more consistently sized the particles, the higher the commercial value.

IG6’s processing-first strategy is built around generating near-term revenue from these high-value products before broader battery-grade supply chains fully mature. Rather than requiring a mine to operate before processing can begin, the company can source feedstock and process it for immediate commercial sale, keeping capital intensity lower while accelerating the path to revenue.

Australia currently has no commercial graphite micronising capacity. The Collie facility would fill that domestic supply gap directly, positioning IG6 with a first-mover advantage in a jurisdiction where demand from both Australian industrial customers and north Asian buyers is reportedly growing. For investors, the significance lies in the combination of a tangible physical asset under construction, government grant backing, and a product category with established end markets.

Customer momentum and strategic links building ahead of production

Expanding customer engagement

According to the announcement, customer engagement has expanded as the Collie facility has progressed toward production. The company has reported strong interest from prospective buyers seeking new supply sources for graphite products. Customer categories cited include:

1. Australian industrial customers
2. North Asian customers
3. Trading groups

It is important to note that the announcement describes this as interest and engagement, not executed supply agreements. No signed contracts have been disclosed at this stage.

Collie’s role in the IG6-Alkeemia Joint Venture

Beyond its standalone production role, the Collie Micronising Facility’s development has been described as instrumental in fast-tracking progress at the IG6-Alkeemia Joint Venture located in Porto Marghera, Italy. The implication is that Collie’s technical and commercial advancement has provided a foundation that supports the JV’s own development timeline. Full detail on the JV is available in the separate ASX release dated 27 May 2026.

Key Development

The Collie Micronising Facility is described as instrumental in fast-tracking progress at the IG6-Alkeemia Joint Venture in Porto Marghera, Italy, with further detail contained in the ASX release dated 27 May 2026.

Looking ahead to Q2 2027

With earthworks and civil construction now cleared to commence, the project roadmap points toward mechanical completion in Q2 2027 within the $8.0 million capital cost estimate. Across its Western Australian and European facilities, IG6 is targeting total production capacity of approximately 20,000t/y.

The company also holds the Springdale mineral resource in Western Australia, which provides long-term feedstock optionality for its processing operations. Four milestones under the Collie Industrial Transition Fund grant remain ahead, and each will represent a further trigger point for both grant drawdowns and investor attention as construction advances.

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