Australia’s only graphite mine is set to reopen with Valence Industries today listing on the ASX in preparation for the restart of Uley mine.
The company listed on the stock exchange this morning after raising close to $7 million of capital to reopen Uley Graphite Mine, 23km from Port Lincoln in South Australia.
Chief executive Christopher Darby said there had been an uplift in demand for graphite as supply gaps widened, stating production would recommence in the first half of 2014.
“With the near-term recommencement of the Uley manufacturing facilities, Valence is perfectly positioned to capitalise on growing supplier gap in graphite market as China’s stranglehold on supply loosens,” Darby said.
Darby said $3 million has been spent over the last two years refurbishing the existing road, electricity, and water infrastructure at the site.
The first stage of mining will process existing ore stockpiles while the second stage will see the construction of a $34m processing plant, with production ramped up to 50,000 – 60,000 tonnes per annum.
Launching production at the site will create about 50 jobs, including 40 at the mine site.
The Uley graphite mine was discovered in the early 1800’s and has been in care and maintenance mode since 1993.