Kingsland Nears Key Milestone at Leliyn Graphite Project Amid US Tariff Shift
Kingsland Minerals is finalising its scoping study for the Leliyn Graphite Project, positioning itself to capitalise on shifting global graphite markets driven by new US tariffs on Chinese imports.
- Scoping study for 1Mtpa graphite mine and processing facility nearing completion
- Test work on purified spherical graphite for batteries almost finished
- US tariffs on Chinese graphite boost demand for non-Chinese sources like Leliyn
- Binding offtake agreement secured with Quinbrook Infrastructure Partners
- Plans to expand indicated resources and proceed to pre-feasibility study
Leliyn Project Approaches Critical Development Phase
Kingsland Minerals Ltd (ASX, KNG) is advancing steadily towards completing its scoping study for the Leliyn Graphite Project in the Northern Territory, with results expected by September 2025. The study outlines plans for a 1 million tonnes per annum mine and processing facility designed to produce a high-grade 94% total graphitic carbon (TGC) concentrate. This milestone is pivotal, setting the stage for a more detailed pre-feasibility study and potential project expansion.
Strategic Timing Amid Global Market Shifts
The timing of Leliyn’s development is particularly advantageous given recent geopolitical developments. The US Department of Commerce has imposed steep anti-dumping tariffs; up to 160% combined; on Chinese graphite imports, especially processed active anode material used in batteries. This has triggered a global reassessment of graphite supply chains, elevating the appeal of non-Chinese sources like Leliyn. Kingsland’s project benefits from this market dynamic, potentially commanding stronger pricing and demand.
Technical Progress and Offtake Security
Alongside the scoping study, Kingsland is nearing completion of test work to produce purified spherical graphite, a critical material for electric vehicle batteries and battery energy storage systems. The company has secured a binding offtake agreement with strategic shareholder Quinbrook Infrastructure Partners, ensuring a committed market for future graphite concentrate production. This partnership underscores confidence in Leliyn’s commercial viability.
Resource Potential and Expansion Plans
The current mineral resource estimate includes 12.3 million tonnes of indicated resources at 7.9% TGC and 180.2 million tonnes inferred at 7.2% TGC, containing a total of 14 million tonnes of graphite. However, only 23% of the known graphite strike length has been drilled, suggesting significant upside potential. Kingsland plans further drilling to convert inferred resources to indicated status, which would provide flexibility to scale the mine and processing operations beyond the initial 1Mtpa design.
Prudent Development Approach
Kingsland is adopting a cautious, staged approach to development. The company will only proceed with advanced downstream processing studies once economic viability is confirmed through the scoping and pre-feasibility studies. This disciplined methodology aims to mitigate risk while positioning Leliyn to meet growing demand for battery-grade graphite products.
Bottom Line?
As Kingsland finalises its scoping study, the Leliyn Project stands poised to leverage shifting market dynamics and expand its footprint in the global graphite supply chain.
Questions in the middle?
- Will the final scoping study confirm economic viability amid volatile graphite prices?
- How quickly can Kingsland expand indicated resources to support larger-scale production?
- What impact will evolving US-China trade relations have on graphite demand and pricing?
