TIDMBEM
Beowulf Mining PLC
27 October 2023
27 October 2023
Beowulf Mining Plc
("Beowulf" or the "Company")
Chinese Export Controls on Natural Graphite Products
Beowulf (AIM: BEM; Spotlight: BEO), is pleased to provide a
comment on the Chinese government announcement dated 20 October
2023 with regards to the export controls on graphite products as
from 1 December 2023.
Chinese Export Controls
On 20 October 2023, China announced its decision to impose
export controls on natural graphite and synthetic graphite
(including graphite anode materials). Graphite anodes are a key
component in Lithium-Ion Batteries ("LIBs") and many other battery
technologies, and are widely regarded to be the material of choice
in battery technologies for a foreseeable future. China is the
world's largest supplier of natural and synthetic graphite,
currently providing more than 70 per cent of the graphite and
refining more than 90 per cent of the graphite anodes used in
LIBs.
According to Benchmark Minerals Intelligence ("Benchmark")
analysis, the Chinese policy could hinder non-Chinese anode
production manufacturers who currently rely on feedstock material
from China, and further push anode manufacturers outside of China
to source raw-materials from elsewhere.
Grafintec
Grafintec Oy ("Grafintec"), Beowulf`s 100 per cent owned Finnish
subsidiary, is currently establishing a facility for processing
graphite, with the final product primarily tailored for anode
manufacturing. This product is technically referred to as coated
spherical graphite, which increases a battery's competitiveness in
terms of performance and cost.
The facility, located in the GigaVaasa area in Korsholm
municipality, Finland, will begin processing non-Chinese imported
material with the aim to process Grafintec's own mined material in
the future. The GigaVaasa area is an industrial zone focused on
energy storage and battery technologies and therefore an ideal
location for Grafintec's graphite processing and anode
manufacturing hub.
Raw-Materials Security
To ensure a secure and sustainable supply of natural and refined
graphite, the EU's Critical Raw Materials Act ("CRMA") sets a
target that by 2030, 40 per cent of all processed graphite used
within the Union is produced by the Union, and that 10 per cent of
the graphite used is extracted from within the EU. Grafintec's
strategy is aligned with both these targets, through the initial
development of its processing facility at GigaVaasa, to
subsequently extracting graphite from its own natural graphite
projects of Aitolampi and Rääpysjärvi .
Aitolampi, which is 100 per cent owned by Grafintec, is a
natural graphite deposit with a reported Indicated and Inferred
Mineral Resource Estimate of 26.7 million tonnes at 4.8 per cent
Total Graphitic Carbon ("TGC") for 1,275,000 tonnes of contained
graphite (reported in accordance with the 2012 JORC Code) , and is
one of Europe's largest known flake graphite deposits. Furthermore,
metallurgical test-work has confirmed that graphite from Aitolampi
can produce high-grade concentrate in the range of 96 - 98 per cent
TGC suitable as a pre-cursor for graphite anode materials
production.
Grafintec also explores a number of early-stage graphite
projects, including Rääpysjärvi, where a small quarry has
historically been mined, and where Grafintec previously reported
graphite contents from grab samples of more than 50 per cent TGC
(limit of the analysing methodology). In November 2022, Grafintec
excavated trenches at four different locations within one of the
conductive zones, with all trenches revealing significant flake
graphite mineralisation. With 12 conductive zones that remains
untested, this could indicate potential for a larger tonnage of
graphite mineralisation in the area.
Ed Bowie, CEO of Beowulf, commented:
"While the impact of the export ban imposed by China remains
unclear, it does highlight the vulnerability of Europe and the rest
of the world to the control China has on graphite and other
minerals critical for the green transition. Grafintec's strategy is
to provide a secure, independent, and sustainable source of
graphite for use in anodes for LIBs, which is fully aligned with
the EU's Critical Raw Materials Act."
Rasmus Blomqvist, Managing Director of Grafintec, commented:
"Having ownership of one of Europe's largest natural flake
graphite deposits and with our establishment of the graphite anode
materials plant ("GAMP") in the GigaVaasa area, we are well
positioned to support the future supply chain requirements for
graphite anode material in the bourgeoning LIB sector."
Enquiries:
Beowulf Mining plc
Ed Bowie, CEO ed.bowie@beowulfmining.com
SP Angel
(Nominated Adviser & Broker)
Ewan Leggat / Stuart Gledhill / Adam Tel: +44 (0) 20 3470
Cowl 0470
BlytheRay
Tim Blythe / Megan Ray Tel: +44 (0) 20 7138
3204
About Beowulf Mining plc
Beowulf Mining is a mining company with main activities in
exploration and development in Sweden, Finland and Kosovo.
Beowulf's portfolio is diversified by commodity, geography and
stage of development of the projects and consists primarily of iron
ore, graphite, gold and base metals. Beowulf Mining is
headquartered in London, England.
Cautionary Statement
Statements and assumptions made in this document with respect to
the Company's current plans, estimates, strategies and beliefs, and
other statements that are not historical facts, are forward-looking
statements about the future performance of Beowulf. Forward-looking
statements include, but are not limited to, those using words such
as "may", "might", "seeks", "expects", "anticipates", "estimates",
"believes", "projects", "plans", strategy", "forecast" and similar
expressions. These statements reflect management's expectations and
assumptions in light of currently available information. They are
subject to a number of risks and uncertainties, including, but not
limited to , (i) changes in the economic, regulatory and political
environments in the countries where Beowulf operates; (ii) changes
relating to the geological information available in respect of the
various projects undertaken; (iii) Beowulf's continued ability to
secure enough financing to carry on its operations as a going
concern; (iv) the success of its potential joint ventures and
alliances, if any; (v) metal prices, particularly as regards iron
ore. In the light of the many risks and uncertainties surrounding
any mineral project at an early stage of its development, the
actual results could differ materially from those presented and
forecast in this document. Beowulf assumes no unconditional
obligation to immediately update any such statements and/or
forecast.
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