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DIGGeRs & DeALeRs

Comprehensive Supply Chain Solutions

Talga takes preferred path

fter nearly a decade of searching for the uct. Talnode-C has been developed by Talga declared it publicly without having done their
A best market access for its unique high- and partners for fast charge, high power, high due diligence on us and the project and there
grade graphite, Talga Resources Ltd appears capacity and low temperature performance in is a number of similar sized companies work-
to have finally settled on its entry point and it is lithium-ion batteries. ing with us who have tested and proven our
closer than most resources companies would Most battery minerals-focused mining com- material.”
be willing to go. panies have chosen to avoid the complexity of Talga has received expressions of interest
A detailed feasibility study released in Au- downstream processing, but Thompson be- exceeding 300% of Vittangi’s planned capac-
gust highlighted Talga’s ability to produce a lieves Talga’s strategy is being recognised as ity incorporating engagements with nearly 20
graphite anode product – a key ingredient a sensible decision. planned European battery manufacturers and
in lithium-ion batteries used to charge EVs – “Our vertical integration is now being val- six global automotive OEMs.
from its Vittangi graphite project in northern ued,” he said. “We own and control whole Car manufacturers themselves are still ne-
Sweden. It represented an ambitious leap from supply chain before taking this path we didn’t. gotiating the labyrinthine EV battery supply
junior explorer to integrated battery chemical Analysts and others investigating the battery chain to find the most reliable, secure route
producer but 18 months on, managing direc- supply chain are reviewing our strategy posi- from raw materials to finished products. Talga’s
tor Mark Thompson is increasingly confident tively.” strategy is to provide them with some clarity
investors and customers are convinced by the The evidence of investor support is plain and security in at least one part of the chain.
company’s strategy and the wider battery min- to see. Talga shares are up nearly 50% year- “They are all focused on Tier 1 assets which
erals narrative. on-year and a recent $10 million placement can make anode material,” Thompson said.
“There is a global investment shift towards brought in new institutional and sophisticated “They don’t look at the corporate side of Talga,
real tangible assets,” Thompson told Paydirt. investors. they are all asset focused, particularly around
“Natural resources have definitely bottomed “The recent capital raising was oversub- jurisdiction and we couldn’t be in a better place
out after 10 years of downward trend following scribed within two hours. We had to do a se- than Northern Europe.”
the GFC. For the first time in a long time we vere cut-back on requests and we are still trad- The company’s extensive piloting testwork
are seeing lots of interest in overall sentiment ing at a premium. Bigger players are starting to has given prospective customers physical evi-
towards natural resources, towards Talga and pay attention.” dence of Vittangi’s quality.
also towards EVs.” Thompson is also adamant graphite’s time “It is a working model, not just a feasibility
Talga’s story is increasingly wedded to the in the battery minerals sun is still to come. study on paper,” Thompson said. “We have
EV thematic and Thompson is comfortable Lithium, cobalt and nickel have all enjoyed bull had trial mining and samples through piloting,
with the direction it is heading. While sales for runs on the back of projected demand from EV customers have then tested the material; we
all car types have fallen during the global pan- markets, but graphite seemingly missed out. don’t feel it is an issue.”
demic, EV models have proven most resilient, “All the other commodities were valued Vittangi’s location in one of the most stable
increasing their share in many major markets. prior to the boom except graphite,” he said. and mining-friendly jurisdictions in the world is
The pandemic and associated lockdown “Institutions are now convinced by the overall also an advantage.
have also brought supply chain security into EV story but need exposure and we offer them “Permitting times are out of our control but
sharp relief for car manufacturers, investors that opportunity,” he said. “We have more than they more about dealing with timeframes,
and governments. Talga’s decision to produce 5,000 shareholders now, and they are well-ed- there is no risk as such. We virtually have ap-
graphite anode – a highly refined and coated ucated, fans of EV technology and our vision proval for the first 25,000 tpa stage mining
form of graphite used in lithium-ion batteries – for cleaner, greener production.” stage anyway.
instead of a straight graphite concentrate fits Talga will use proceeds from the placement “All the processing approvals are under-
well with supply chain concerns. to add greater certainty to the mining side of way and the timeline for that suits the timeline
Talga’s plan is for Vittangi is to establish a Vittangi, refine the feasibility study for financing of customers with everything scheduled for
conventional open pit and concentrator op- and scale up production of Talnode-C sam- 2023.”
eration at Vittangi. Concentrate will then be ples for customers. With investor support and customer interest
trucked to a coast anode refinery where Talga The last part will be vital as Talga looks locked in and jurisdictional risk at a minimum,
will produce 19,000 tpa of its Talnode-C prod- to take advantage of its growing reputation Thompson is confident Talga will attain pro-
among its potential ducer status in the next three years.
customer base. “There is every reason to be confident in the
“We couldn’t have project going ahead,” he said.
bigger players test- It has been a winding road for Talga as it test-
ing our material, it ed the suitability of Vittangi’s unique orebody
is going through for numerous markets. However, Thompson
larger automotive appears more confident than ever in finding
OEM qualification the end destination.
processes now,” “I’m very gratified over what has been
Thompson said. achieved, particularly in the last six months,”
“We have a part- he said. “The investments we have made have
nership with Mitsui, paid off; now it is all about execution.”
which wouldn’t have
– Dominic Piper

Talga has identified a direct path into the battery anode market,
handing it vertically integrated opportunities
Page 64 OCTOBeR 2020 aUSTRaLIa’S PaYDIRT