Lincoln Minerals has unveiled a revised pre-feasibility study for its Kookaburra Graphite Project, located 35 kilometers north of Port Lincoln in South Australia. This project is poised to become the newest addition to Australia's graphite industry, following the closure of the Uley Mine in 2017. The study outlines plans for open-pit mining alongside a straightforward flotation process aimed at producing graphite concentrate for export outside of China.

The Kookaburra project is designed to produce flake graphite concentrate, initially targeting industrial customers before shifting focus to the burgeoning electric vehicle (EV) market after two years of operation. The demand for alternative graphite supply sources has surged, particularly in response to China’s export restrictions and U.S. supply chain mandates, as highlighted in the study.

The project’s low start-up capital costs support a "First to Market" strategy, employing a staged development approach. Stage 1 plans to mine 75,000 tonnes per annum (ktpa) to produce 10,000 tonnes per annum of graphite concentrate, utilizing the existing Mining Lease (ML6460), which has been approved for 35 ktpa. The project is expected to scale up to produce 60 ktpa in Stage 2, with its proximity to infrastructure helping to minimize costs and accelerate market entry.

The study estimates total expenditures for both stages at approximately $52.8 million, with a pre-tax payback period of just 2.2 years following the construction of Stage 2.

Lincoln’s CEO, Jonathon Trewartha, expressed enthusiasm about the study's findings, stating, “We are extremely delighted with the results of our Kookaburra Graphite Project Pre-Feasibility Study, which builds on the previous study completed in 2017. This demonstrates how a two-staged development process can allow us to become Australia’s newest graphite producer and first-to-market by leveraging our high-grade graphite core, which requires low capital expenditure and no pre-strip to commence production."

Trewartha emphasized the project’s first-mover advantage, which could enhance Lincoln's ability to secure long-term customers seeking non-China graphite supply sources. The staged development approach is also expected to generate necessary cash flow to fund the larger-scale production of Stage 2.

Graphite produced at Kookaburra will be packed in containers and transported to Port Adelaide for shipping. In addition to the graphite project, Lincoln Minerals is also advancing a large-scale Green Iron Project on the Eyre Peninsula, supported by a recently identified 1.2 billion tonne magnetite resource. This project aims to establish an end-to-end domestic green iron and steel supply chain, including plans for a government-endorsed green steel plant with a capacity of 2.5 million tonnes per annum.