International Graphite is advancing Australia’s first commercial graphite micronising plant at Collie, targeting commissioning by mid-2027. The facility promises a diverse range of superfine graphite products and potential annual EBITDA up to AUD 14.2 million based on current market conditions.
- Collie graphite micronising plant on track for mid-2027 commissioning
- Facility to produce superfine graphite products with high unit prices
- Estimated annual revenue of AUD 26M to 32.4M and EBITDA up to AUD 14.2M
- Operations to start conservatively with one shift, ramping to 24/7
- Strong organic growth and integration opportunities with Springdale project
Collie Facility Advances as Australia’s First Commercial Graphite Micronising Plant
International Graphite Limited (ASX:IG6) is progressing steadily with its Collie Micronising Facility, set to become Australia’s first commercial-scale graphite micronising operation. Construction and installation of initial milling equipment remain on schedule for commissioning in mid-2027, with further equipment deliveries expected by the end of Q2 2027. This milestone positions IG6 to capitalize on rising geopolitical tensions disrupting graphite supply chains by offering a secure, local source of high-value graphite products.
Expanded Product Range Targets Premium Superfine Graphite Market
The facility’s final equipment selection, informed by extensive market and product research at IG6’s Collie R&D Centre, now supports production of superfine graphite materials down to 5 microns. These finer products command higher unit sales prices, particularly in high purity grades (99.0-99.9% TGC), reflecting their specialized industrial applications despite lower throughput and higher production costs. The production capacity is estimated between 4,300 and 6,400 tonnes per year across a spectrum of particle sizes (5µm to 45µm), enabling a flexible sales strategy focused on margin maximization rather than volume.
Financial Snapshot Suggests Strong Earnings Potential
Applying current spot prices and operational modelling, IG6 estimates the Collie facility could generate annual revenues between AUD 26.0 million and AUD 32.4 million, with EBITDA ranging from AUD 11.1 million to AUD 14.2 million. These figures, while illustrative and subject to market fluctuations, underscore the economic viability of the project. Cost of goods sold assumptions remain consistent with prior FEED studies, incorporating feedstock sourced from multiple jurisdictions and reflecting up-to-date logistics, labour, and power costs.
Strategic Partnerships and Growth Pathways Bolster Market Position
IG6’s non-binding Heads of Terms with Wogen Pacific Limited provides a direct route to established Asia-Pacific customers, enhancing market access for Collie’s micronised graphite products. Wogen also plans to supply up to 10,000 tonnes per year of flake graphite concentrate to support feedstock needs as production scales. The company’s strategy includes organic growth through low-capital expansions and product diversification, alongside exploring localised graphite purification and potential integration with the Springdale Graphite Project for a vertically integrated Australian graphite platform.
Operational Ramp-Up and Government Support
Operations will commence with a conservative schedule of one eight-hour shift, five days a week, during the first year, with plans to ramp up to continuous 24/7 production as market conditions permit. The project enjoys strong backing from both the Australian and Western Australian governments, recognising its strategic importance to national critical minerals capability and regional economic diversification. This support complements IG6’s broader ambitions, including its European joint venture at Porto Marghera, Italy.
Bottom Line?
As IG6 prepares to commission its Collie facility, the balance between premium product focus and operational scaling will be crucial to translating potential EBITDA into realised earnings.
Questions in the middle?
- How will evolving graphite market prices impact the facility’s profitability over the next 12 months?
- What is the timeline and likelihood for expanding production capacity beyond initial volumes?
- How will integration with the Springdale Graphite Project influence feedstock security and cost structure?