RCS - Beowulf Mining PLC - Chinese Export Controls on Graphite Products

Beowulf MiningAnnouncement

27/10/2023 07:15

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RNS Number : 4640R  Beowulf Mining PLC  27 October 2023

27 October 2023

 

Beowulf Mining Plc

 

("Beowulf" or the "Company")

 

Chinese Export Controls on Natural Graphite Products

 

Beowulf (AIM: BEM; Spotlight: BEO), is pleased to provide a comment on the
Chinese government announcement dated 20 October 2023 with regards to the
export controls on graphite products as from 1 December 2023.

 

Chinese Export Controls

On 20 October 2023, China announced its decision to impose export controls on
natural graphite and synthetic graphite (including graphite anode materials).
Graphite anodes are a key component in Lithium-Ion Batteries ("LIBs") and many
other battery technologies, and are widely regarded to be the material of
choice in battery technologies for a foreseeable future. China is the world's
largest supplier of natural and synthetic graphite, currently providing more
than 70 per cent of the graphite and refining more than 90 per cent of the
graphite anodes used in LIBs.

According to Benchmark Minerals Intelligence ("Benchmark") analysis, the
Chinese policy could hinder non-Chinese anode production manufacturers who
currently rely on feedstock material from China, and further push anode
manufacturers outside of China to source raw-materials from elsewhere.

 

Grafintec

Grafintec Oy ("Grafintec"), Beowulf`s 100 per cent owned Finnish subsidiary,
is currently establishing a facility for processing graphite, with the final
product primarily tailored for anode manufacturing. This product is
technically referred to as coated spherical graphite, which increases a
battery's competitiveness in terms of performance and cost.

The facility, located in the GigaVaasa area in Korsholm municipality, Finland,
will begin processing non-Chinese imported material with the aim to process
Grafintec's own mined material in the future. The GigaVaasa area is an
industrial zone focused on energy storage and battery technologies and
therefore an ideal location for Grafintec's graphite processing and anode
manufacturing hub.

 

Raw-Materials Security

To ensure a secure and sustainable supply of natural and refined graphite, the
EU's Critical Raw Materials Act ("CRMA") sets a target that by 2030, 40 per
cent of all processed graphite used within the Union is produced by the Union,
and that 10 per cent of the graphite used is extracted from within the EU.
Grafintec's strategy is aligned with both these targets, through the initial
development of its processing facility at GigaVaasa, to subsequently
extracting graphite from its own natural graphite projects of Aitolampi and
Rääpysjärvi.

 

Aitolampi, which is 100 per cent owned by Grafintec, is a natural graphite
deposit with a reported Indicated and Inferred Mineral Resource Estimate of
26.7 million tonnes at 4.8 per cent Total Graphitic Carbon ("TGC") for
1,275,000 tonnes of contained graphite (reported in accordance with the 2012
JORC Code), and is one of Europe's largest known flake graphite deposits.
Furthermore, metallurgical test-work has confirmed that graphite from
Aitolampi can produce high-grade concentrate in the range of 96 - 98 per cent
TGC suitable as a pre-cursor for graphite anode materials production.

Grafintec also explores a number of early-stage graphite projects, including
Rääpysjärvi, where a small quarry has historically been mined, and where
Grafintec previously reported graphite contents from grab samples of more than
50 per cent TGC (limit of the analysing methodology). In November 2022,
Grafintec excavated trenches at four different locations within one of the
conductive zones, with all trenches revealing significant flake graphite
mineralisation. With 12 conductive zones that remains untested, this could
indicate potential for a larger tonnage of graphite mineralisation in the
area.

 

Ed Bowie, CEO of Beowulf, commented:

"While the impact of the export ban imposed by China remains unclear, it does
highlight the vulnerability of Europe and the rest of the world to the control
China has on graphite and other minerals critical for the green transition.
Grafintec's strategy is to provide a secure, independent, and sustainable
source of graphite for use in anodes for LIBs, which is fully aligned with the
EU's Critical Raw Materials Act."

 

Rasmus Blomqvist, Managing Director of Grafintec, commented:

"Having ownership of one of Europe's largest natural flake graphite deposits
and with our establishment of the graphite anode materials plant ("GAMP") in
the GigaVaasa area, we are well positioned to support the future supply chain
requirements for graphite anode material in the bourgeoning LIB sector."

 

Enquiries:

 Beowulf Mining plc
 Ed Bowie, CEO                              ed.bowie@beowulfmining.com
 SP Angel

 (Nominated Adviser & Broker)
 Ewan Leggat / Stuart Gledhill / Adam Cowl  Tel: +44 (0) 20 3470 0470

 BlytheRay
 Tim Blythe / Megan Ray                     Tel: +44 (0) 20 7138 3204

 

 

 

About Beowulf Mining plc

 

Beowulf Mining is a mining company with main activities in exploration and
development in Sweden, Finland and Kosovo. Beowulf's portfolio is diversified
by commodity, geography and stage of development of the
projects and consists primarily of iron ore, graphite, gold and base metals.
Beowulf Mining is headquartered in London, England.

 

 

Cautionary Statement

 

Statements and assumptions made in this document with respect to the Company's
current plans, estimates, strategies and beliefs, and other statements that
are not historical facts, are forward-looking statements about the future
performance of Beowulf. Forward-looking statements include, but are not
limited to, those using words such as "may", "might", "seeks", "expects",
"anticipates", "estimates", "believes", "projects", "plans", strategy",
"forecast" and similar expressions. These statements reflect management's
expectations and assumptions in light of currently available information. They
are subject to a number of risks and uncertainties, including, but not limited
to , (i) changes in the economic, regulatory and political environments in the
countries where Beowulf operates; (ii) changes relating to the geological
information available in respect of the various projects undertaken; (iii)
Beowulf's continued ability to secure enough financing to carry on its
operations as a going concern; (iv) the success of its potential joint
ventures and alliances, if any; (v) metal prices, particularly as regards iron
ore. In the light of the many risks and uncertainties surrounding any mineral
project at an early stage of its development, the actual results could differ
materially from those presented and forecast in this document. Beowulf assumes
no unconditional obligation to immediately update any such statements and/or
forecast.

 

 

 

 

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