Kingsland Minerals’ latest scoping study shows its Leliyn graphite project in the Northern Territory can deliver graphite concentrate at some of the lowest costs worldwide, setting it up as a strong contender in the global market.
The study, based on a 1.5 million tonne per year processing plant and open pit mining, estimates a mine life of nearly seven years. It forecasts steady production of around 95,000 tonnes of graphite concentrate annually with operating costs that stack up well against international peers.
Key figures from the study include an initial capital cost of $343 million and operating costs of $651 per tonne, which point to a healthy profit margin over the project’s lifespan.
Kingsland’s managing director, Richard Maddocks, said the results emphasise that the outlook for the project is “excellent”.
“This result is even more promising given that we only had a limited amount of mineralisation to utilise for the study,” Maddocks said. “With more drilling and increased indicated resources, we are confident that we can build on this result and establish a long-life, profitable graphite concentrate operation.”
Located about 250km southeast of Darwin, the project benefits from accessible roads and planned infrastructure upgrades, including a processing facility and accommodation village.
The scoping study also highlights clear opportunities to reduce costs and improve production through further technical work and optimisation. Kingsland plans to explore cheaper power options and more efficient processing methods to strengthen the project’s economic outlook.
Funding will likely come from a mix of debt and equity, with the company having already raised around $6.2 million to advance development. Kingsland will also engage with government bodies to tap into available financial support for critical minerals projects.
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