REG - GreenRoc Mining PLC - Statement re: China Restricting Export of Graphite

GreenRoc Strategic MaterialsAnnouncement

24/10/2023 07:00

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RNS Number : 0232R  GreenRoc Mining PLC  24 October 2023

GreenRoc Mining Plc / EPIC: GROC / Market: AIM / Sector: Mining

24 October 2023

GreenRoc Mining plc

("GreenRoc" or the "Company")

 

Statement Re: China Restricting Export of Graphite

 

GreenRoc Mining Plc (AIM: GROC), a company focused on the development of
critical minerals projects in Greenland, notes the recent decision by the
Chinese government to implement export restrictions on graphite, a critical
component in electric vehicle batteries.

 

China's recent announcement to implement restrictions on the export of higher
grade graphite, scheduled to take effect by 1 December 2023, has significant
implications for the global battery industry.

 

Under the restrictions, Chinese companies must seek special export permits to
supply this crucial raw material to international battery manufacturers.
Notably, the export curbs encompass both synthetic and natural flake graphite,
as well as graphite concentrate and purified graphite. It is important to
emphasise that these restrictions do not extend to lower grade graphite
intended for conventional applications such as in the manufacturing of steel.

 

China, being the dominant force in the global mineral supply chain, is the
foremost graphite producer and exporter, and the primary source of over 70% of
global synthetic graphite production and approximately 65% of natural flake
graphite. Moreover, China also processes more than 90% of graphite which is
used in electric vehicle (EV) battery anodes.

 

The extensive use of graphite in lithium-based EV batteries foretells a
significant surge in demand, with forecasts indicating a quadrupling of
requirements within the next decade. In Europe alone, the demand for
battery-grade graphite is estimated to reach one million tonnes by 2030,
equivalent to the entire global graphite production in the year 2020.

Stefan Bernstein, GreenRoc's CEO, commented: "China's decision to impose
export restrictions on graphite underscores the critical need to establish
secure supply chains by boosting domestic, non-Chinese production capability,
which is less vulnerable to market shocks and geopolitical events.

 

"The targeted nature of these export restrictions, focused only on
battery-grade graphite while excluding conventional low-purity graphite
material, should be of concern to everyone engaged in the energy transition.
This selective targeting creates a substantial risk that ongoing actions to
replace internal combustion engine vehicles with EVs will be slower and more
expensive given that today no EVs can be manufactured without relying on
battery grade graphite from China. Moreover, this move by China will bolster
the competitive advantage of Chinese electric vehicle manufacturers.

 

"In response, the rest of the world, including Europe and North America, must
accelerate the development of their own upstream industries in the critical
mineral space. This is not merely an option but a necessity in order to
establish robust supply chains and release OEMs from undue reliance on China.
Such a step would be pivotal in securing the swift transition to low CO(2)
emission technologies.

 

"This development is a timely reminder that our plans at GreenRoc to bring our
world-class graphite deposit at Amitsoq in South Greenland into production in
the space of a few years, alongside the development of a processing plant to
produce anode-ready material for EV battery manufacturers, mean that we are
ideally positioned to play a critical role in Europe and North America's
energy transition.

 

"The publication of GreenRoc's Amitsoq project's preliminary economic
assessment (PEA) next week represents an important milestone in the
development of Amitsoq and, in the context of China's export restrictions,
could not be timelier. It also underscores GreenRoc's unwavering commitment to
supporting the advance of sustainable, low-emission technology on a global
scale."

**ENDS** 

For further information, please contact: 

   GreenRoc Mining plc                                         +44 20 3950 0724

   Stefan Bernstein, CEO 

  
   Cairn Financial Advisers LLP (Nomad)                        +44 20 7213 0880

   James Caithie / Sandy Jamieson / Louise O'Driscoll 

  
   SP Angel (Broker)                                           +44 20 3470 0500

   Ewan Leggat / Charlie Bouverat

   
   St Brides Partners Ltd (Financial PR & IR)                  +44 20 7236 1177

   Paul Dulieu / Isabel De Salis / Isabelle Morris             greenroc@stbridespartners.co.uk

  

 

About GreenRoc 

GreenRoc Mining plc is an AIM-quoted company which is developing mining
projects in Greenland in critical, high-demand and high-value minerals.

 

About Amitsoq

Amitsoq is located in the Nanortalik region of southern Greenland and has been
confirmed as one of the highest-grade flake graphite projects in the world.

 

GreenRoc is focused on fast-tracking the development of Amitsoq into a
producing mine in the shortest possible timeframe to meet critical demand from
Electric Vehicle ('EV') manufacturers in Europe and North America for new,
high grade and conflict-free sources of graphite.

 

Key points about Amitsoq:

·   GreenRoc's primary focus at Amitsoq is on developing the Amitsoq Island
Deposit, which has a total inferred, indicated and measured JORC Resource of
23.05 million tonnes (Mt) at an average grade of 20.41% Graphitic Carbon
("C(g)"), giving a total graphite content of 4.71 Mt.

·   Deposits with compliant resources above 20% contained graphite grade
are scarce, with the average global grade of graphite resources being just
8.45% (according to S&P Global).

·    Independent micronisation and spheronisation test work has proven
that Amitsoq graphite can be easily upgraded to high-grade anode-quality
graphite, otherwise known as high purity spherical graphite or cSPG, a key raw
material in the manufacturing of EVs.

·   In GreenRoc's test work programmes, Amitsoq spheronised graphite has
achieved higher than 99.95% purity with relatively little energy input and
processing and using the milder alkaline purification method compared to the
industry standard hydrofluoric acid, boding well for future production costs
and sustainability commitments.

·    Significant further upside exists at Amitsoq as the Amitsoq Island
Deposit is open in at least two directions with potential for considerable
further expansion via the similarly high-grade Kalaaq Mainland Deposit as well
as a series of other high-grade targets on GreenRoc's licence package.

·  The deposit was in small-scale production about 100 years ago, and there
remains considerable underground mine development in place from that time,
which will be of considerable benefit to GreenRoc in the mine construction
phase.

·    Following a detailed evaluation process, the European Raw Materials
Alliance has expressed its support of GreenRoc and its Amitsoq graphite
project, stating that "GreenRoc's graphite resource is of global importance
and, together with the Company's strategy, will enable the European Union to
achieve a certain level of independence for the electrical vehicle supply
chain. ERMA has approved the Amitsoq Graphite project and will engage to
support its development and financing to produce these critical raw materials
for the benefit of the European Union goals." (see RNS dated 8 February 2023).

·  On 9 October 2023, GreenRoc was awarded a grant of approximately
£250,000 by the Automotive Transformation Fund in the UK to part-finance a
feasibility study into the establishment of a graphite spheronisation
processing plant in the UK to produce active anode material from graphite
concentrate delivered from GreenRoc's Amitsoq Graphite Project.

 

 

 

 

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