Sarytogan Graphite Limited has secured a crucial 27-year water licence for its Kazakhstan graphite project, marking a significant step in de-risking development. This approval complements prior permits and supports the upcoming feasibility study.
- 27-year water licence granted for Sherubainura River aquifer
- Water allocation exceeds peak project demand at 2,040 m3/day
- Previous approvals include mining licence, environmental permit, land lease, and power allocation
- Definitive Feasibility Study on track for mid-2026 completion
- Project designated as a Strategic Critical Raw Materials asset for Europe
Water Licence Secured: A Critical Milestone
Sarytogan Graphite Limited (ASX: SGA) has announced the granting of a 27-year water licence for its flagship Sarytogan Graphite Project in Kazakhstan. The licence permits the company to draw up to 2,040 cubic metres of water per day from the Sherubainura River alluvial aquifer, located approximately 10 kilometres from the project site. This volume comfortably covers the estimated peak water requirements, a vital resource for mining operations.
Managing Director Sean Gregory emphasised the importance of this milestone, noting that reliable access to quality water is essential for mining success. The water licence adds to a growing list of approvals that collectively reduce the project's development risks.
Building on a Foundation of Approvals
This water licence follows several key regulatory green lights: the mining licence and environmental permit were secured in late 2024, a land lease for the downstream processing plant was granted in mid-2025, and power allocation for both upstream and downstream operations was confirmed by the end of 2025. Together, these approvals form a robust framework supporting the project's advancement.
Additional permits for the processing plant and tailings storage facility are currently being pursued, with the Definitive Feasibility Study (DFS) for the upstream development progressing on schedule for completion by mid-2026. The DFS will provide a comprehensive assessment of the project's technical and economic viability.
Strategic Importance and Resource Strength
The Sarytogan Graphite Deposit, situated in Kazakhstan's Karaganda region, holds a significant place in the global critical raw materials landscape. It is recognised as a Strategic Project under the European Union’s Critical Raw Materials Act, underscoring its role in supplying sustainable graphite essential for battery technologies and other strategic applications.
The deposit boasts a substantial Mineral Resource Estimate of 225 million tonnes at an average 29.2% total graphitic carbon, alongside an Ore Reserve of 8.6 million tonnes at 30% graphitic carbon. Sarytogan has demonstrated the ability to produce high-purity graphite concentrates, including ultra-high purity grades suitable for advanced industrial uses such as lithium-ion batteries.
Looking Ahead
With the water licence secured, Sarytogan is well positioned to advance its project development. The combination of resource scale, strategic approvals, and ongoing feasibility work paints a promising picture for the company’s role in the critical materials supply chain. However, the successful acquisition of remaining permits and the outcomes of the DFS will be pivotal in shaping the project's trajectory.
Bottom Line?
Securing the water licence marks a key step forward, but the project's future hinges on upcoming feasibility results and further permitting.
Questions in the middle?
- What are the timelines and risks associated with obtaining the remaining processing plant and tailings storage permits?
- How will the Definitive Feasibility Study impact the project's capital requirements and production schedule?
- What are the potential market implications of Sarytogan’s graphite supply for Europe’s critical raw materials strategy?