Alba Mineral Resources PLC has noted the release of a Preliminary Feasibility Study (PFS) by its portfolio company, GreenRoc Mining Plc, regarding the establishment of a downstream processing plant to produce graphite active anode material from graphite concentrate at Amitsoq, South Greenland. The PFS, conducted by SLR Consulting Ltd, revealed compelling results, including a pre-tax Net Present Value (NPV8) of US$837M with an Internal Rate of Return (IRR) of 33.8% and a total gross revenue of US$6.5Bn over a 22-year period. The study also highlighted a 4-year payback period on capital from the start of production and an average annual processing of 80,000t of graphite concentrate at 95% graphitic carbon, producing 39,700t of active anode material.
Stefan Bernstein, CEO of GreenRoc, expressed confidence in the robustness of the Feasibility Study and its potential impact on the European EV Battery industry, stating, "This Feasibility Study firmly places GreenRoc as one of the few contenders to supply the European EV Battery industry with domestically produced active anode material." He also acknowledged the support of a £250k grant from Innovate UK's Automotive Transformation Fund. The study was project managed by the Company and conducted with contributions from expert consultants, Benchmark Mineral Intelligence, ProGraphite, and Decision Risk Analytics.
The PFS highlighted the growing demand for battery grade graphite, with a 400% growth forecasted by leading market analysts due to the energy transition towards electric vehicles and Stationary Battery Storage Systems. The study outlined the process of producing coated spherical purified graphite (CSPG) from natural flake graphite concentrate, emphasizing the political desire to initiate production of domestically sourced and processed graphite for the European and North American battery industries.
The release of the PFS reinforces GreenRoc's plans for a vertically integrated production model for Amitsoq, from mine to battery anode material production. The company also mentioned the possibility of further improvements to the process design in a second stage, with updates to be provided in due course.