International Graphite Limited has secured a construction contract for its Collie Micronising Facility, keeping the project on track for a mid-2027 completion and within budget.
- Construction contract signed with Prosser Built
- Project capital cost remains within budget
- Stage 1 equipment ordered; Stage 2 selection underway
- Facility completion targeted for Q2 2027
- Supported by WA and Australian governments
Construction Contract Secures Facility Progress
International Graphite Limited (ASX:IG6) has formalised a key construction contract for the process building at its Collie Micronising Facility in Western Australia. The agreement with Bunbury-based Prosser Built, a company with over 80 years of industrial project experience in the region, marks a significant milestone in advancing the graphite processing project.
The contract price aligns with the previously budgeted capital estimate, which allocates $6.3 million for Stage 1 and an additional $1.7 million for Stage 2. This disciplined capital management is noteworthy given the current inflationary pressures in construction sectors.
Equipment Orders and Project Timeline
Graphite micronising equipment for the initial stage has been selected and orders placed, while vendor testwork is ongoing to finalise equipment choices for the subsequent stage. Orders for Stage 2 are expected next quarter, maintaining momentum towards full facility commissioning.
The complete development, encompassing both stages, is scheduled for completion in the second quarter of 2027. This timeline supports International Graphite’s strategy to establish a capital-efficient graphite processing platform serving industrial, energy storage, advanced manufacturing, and defence sectors.
Local Content and Government Backing
International Graphite’s local content strategy involves engaging engineering, electrical, civil, and earthmoving firms from the region, underpinning regional economic benefits. The project also enjoys financial support from the Western Australian Government’s Collie Industrial Transition Fund and the Australian Government’s Critical Minerals Office, reflecting strategic alignment with national critical minerals initiatives.
These government programs aim to bolster domestic processing capacity, reducing reliance on traditional supply chains and supporting secure access to critical minerals, a theme echoed in International Graphite’s broader operations, including its European joint venture and the Springdale Graphite Project.
Positioning Amid Growing Demand
The Collie facility is a cornerstone in International Graphite’s growth trajectory, designed to meet rising demand for high-spec graphite products. The company’s dual focus on Australian and European processing hubs positions it to capitalise on geopolitical shifts favouring trusted supply chains.
With construction underway and equipment procurement progressing, the Collie Micronising Facility is poised to become Australia’s first commercial graphite micronising plant, a notable development in the country’s critical minerals landscape.
Bottom Line?
As construction kicks off within budget and government backing remains firm, International Graphite’s Collie facility is shaping up to be a pivotal asset in domestic graphite processing capacity.
Questions in the middle?
- Will equipment selection for Stage 2 meet performance and cost expectations?
- How will ongoing government support influence project financing and timelines?
- What are the implications of the Collie facility’s progress for International Graphite’s broader supply chain strategy?