Renascor Resources Limited (ASX:RNU) Announces Receipt of ECI Submissions for Upstream Graphite Operation
ECI Submissions Received
Renascor Resources Limited has received Early Contractor Involvement (ECI) submissions from its engineering, procurement and construction contractors for its proposed upstream graphite mining and processing operation in South Australia.
Operational and Cost Improvements
The ECI process has refined the engineering of the mineral processing plant, incorporating design enhancements to the comminution, flotation and re-grind circuits. These improvements are expected to increase graphite production by approximately 60%, reduce operating costs by eliminating higher-cost reagents, and improve graphite grade and recovery from previous targets. The capital cost estimate for the mineral processing plant has risen by 4.7%, largely due to design improvements and inflationary factors.
Executive Comments
Managing Director David Christensen commented, “The competitiveness of Renascor’s BAM project is based in large part on the quality of the Siviour Graphite Deposit and its potential to offer amongst the lowest operating cost and most capital efficiency of any ex-China graphite project. The ECI process further underscores Siviour’s global competitiveness by offering material improvements to the mineral processing plant and providing confidence that the capital cost estimates developed in the 2023 BAM Study are reasonable and achievable.”
Next Steps
Renascor is currently evaluating the ECI submissions to select a preferred contractor, considering factors such as price, construction schedule, commercial delivery models, and contractor incentives. The selection will advance the project to the EPC stage.
Motley Fool contributor Lianne Eastty has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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