Sarytogan Graphite has been granted a minimum 25-year mining licence for its flagship graphite project in Kazakhstan, hot on the heels of receiving the environmental tick last week. The approval, issued by the Ministry of Industry and Construction of Kazakhstan, has locked in security of tenure for the Sarytogan graphite project and paves the way for the next phase of development. Sarytogan Graphite’s high-grade graphite project in the Republic of Kazakhstan has been granted a 25-year mining licence.
The new licence spans 8.88 square kilometres and is extendable beyond its initial 25-year period by an additional 20 years or until the resources are fully mined. Minimum yearly expenditure requirements have been pegged at 35,144,216 Kazakh tenge, or almost US$67,000 (A$105,000), which is notably lighter than those of the previous exploration licence.
With all regulatory milestones achieved, the company says it is now in a position to accelerate its finance and resource development plans with a focus on getting to production. ‘The grant of the mining licence is a significant milestone for the Sarytogan graphite project.’ Initial feasibility work focusing on customer needs has gathered pace lately after Sarytogan retrieved a 20t sample from the trial mine, which is being milled at a local Kazakh laboratory.
From there, one tonne will be airfreighted to Australia for flotation testing in the first quarter of next year, followed by purification trials in the United States during the second quarter. The company has also kicked off discussions with potential customers to distribute trial samples, aiming to cement an offtake and funding partner. Sarytogan managing director Sean Gregory said: “The process followed by Sarytogan’s local team under the Kazakh legislation has been diligent and thorough.
It highlights the wherewithal of Kazakhstan to develop this strategic industry ahead of other more cumbersome jurisdictions without compromising proper process.” Sarytogan committed to bolstering the Kazakh economy as part of the licence conditions. At least 50 per cent of production operations will use domestic services and workers and one per cent of production costs will go toward training local personnel and investing in research and development.
Additionally, a yearly contribution of US$7500 (A$12,034) will be allocated to regional socio-economic development. Management said securing the mining licence for the project has been a carefully managed process, led by Sarytogan’s fully-owned Kazakh subsidiary Ushtogan LLP, with each step reflecting strong compliance with regulatory requirements. The journey began with the negotiation of a land access agreement in April 2023, making sure local farm and land users were onboard with the project and helping to set the stage for a strong working relationship with stakeholders.
The company also undertook the central task of converting its massive 229-million-tonne, high-grade mineral resource - featuring an impressive 28.9 per cent total graphitic carbon (TGC) - from the Australian JORC Code to Kazakhstan’s KAZRC standards. The conversion was a necessary step to marry up with local regulatory frameworks.
Application for the formal mining licence was lodged nine months ago in March with the Geological Committee subsequently approving the boundaries in June and clearing a major hurdle towards the mining permit. At the same time as the permit outlines were agreed, Sarytogan also received the official nod from the government that the mining licence would be granted, subject to an environmental permit. Preparing a comprehensive pit closure plan together with further detailed environmental studies and community engagement across the past 18 months has now led to the environmental approval – the final piece of the puzzle - to fall into place.
As owner of a world-class resource strategically positioned between the major markets of Europe and China, Sarytogan also recently picked up significant attention on the global stage. The company was highlighted as a notable investment case study on the sidelines of the United Nations General Assembly, following the establishment of the UN’s Minerals Security Partnership Finance Network. The European Bank for Reconstruction and Development, a key player in the finance initiative.
also agreed to a $5 million investment in the company. With Sarytogan receiving so much attention and the mining permit now safely tucked away in its bag, it may well feel satisfaction from its efforts in 2024 – and the next year appears to hold all the hallmarks of a breakout period for the company. Is your ASX-listed company doing something interesting? Contact: mattbirney@bullsnbears.
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Sarytogan locks in Kazakhstan graphite project mining licence
Sarytogan has picked up a 25-year mining permit for its flagship Kazakhstan graphite project after last week’s environmental nod, locking in security of tenure.