Explorer and developer Lincoln Minerals is moving closer to establishing a new graphite mine in Australia, following the closure of the Uley mine in South Australia in 2017. The company has announced the results of a prefeasibility study (PFS) for its Kookaburra project, located 40 km north of Port Lincoln on the Eyre Peninsula.

The PFS outlines a staged development for Kookaburra using an openpit mining and simple flotation process to produce a graphite concentrate for export outside China.

The two-stage development forecasts an average production of 10 000 t/y of concentrate sales during the first stage, before expansion in the third year to 60 000 t/y of concentrate sales.

“We are extremely delighted with the results of our Kookaburra graphite project PFS, which builds on the previous study completed in 2017 and 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 capex and no pre-strip to commence production.

“This gives Lincoln a first-mover opportunity which will enhance our ability to secure long-term graphite customers – who are increasingly seeking ex-China graphite supply sources,” says Lincoln CEO Jonathon Trewartha.

Lincoln states that the project has the potential to be cashflow positive throughout the graphite price cycle, with an all-in sustaining cost for life-of-mine (LoM) a “break-even” graphite price for industrial products of A$855/t, which is considered compelling for an Australian graphite project.

The project has a 2.4-year payback from the start of Stage 2 and an overall 4.4 years from the start of Stage 1, with a current LoM of up to 16 years.

The Stage 1 capex is forecast to be A$29-million, followed by Stage 2 capex of A$24-million.

Lincoln plans to take a Stage 1 financial investment decision at the end of the 2026 calendar year, indicatively paving the way for the construction and first production starting in 2027. During that time, the company will progress a bankable feasibility study, government critical mineral incentives programmes, approvals, commercial and government investment, and secure offtake and sales agreements, as well as potential strategic partnering and investment opportunities.