Renascor welcomes $1.08 billion energy and emissions reduction deal

Renascor Resources Ltd (ASX:RNU) has applauded the commitment of the Commonwealth and South Australian governments to the $1.08 billion State Energy and Emissions Reduction Deal announced on April 18, 2021. The Bilateral Agreement includes $400 million in funding for investment in priority areas such as carbon capture and storage, electric vehicles, hydrogen and other emissions reduction projects in South Australia. This joint government commitment towards the energy supply security in South Australia, including the targeted investment in priority areas, provides Renascor with additional confidence in its strategy of integrating the Siviour Graphite Mine and concentrator with a downstream purified spherical graphite (PSG) manufacturing facility in South Australia. According to the company, the Siviour Battery Anode Material Project fits well within many of the agreement’s key policy objectives supporting the next wave of technologies in the new energy economy. “Confidence in our strategy” Renascor managing director David Christensen said: “The joint announcement by the Commonwealth and South Australian governments bodes well for Renascor’s Siviour Battery Anode Material Project.  “Our ability to locate our operations entirely within South Australia will provide security of supply and lead to the creation of higher value manufacturing jobs and the capture of downstream value through the production of PSG for sale directly into the electric vehicle raw material supply chain.” Fits well with policy objectives Christensen said: “We believe that the Siviour integrated project fits well within many of the government’s key policy and industry objectives.  “The Siviour Project is a first for Australia. Indeed, it will be the first integrated in-country mine and battery anode material operation outside of China.  “Siviour will be among the world’s lowest-cost producers of an important value-added graphite product (PSG), a critical mineral that is fundamental to the growth of the electric vehicle and renewable energy/battery storage industries.  “And importantly, the Siviour Project will create skilled jobs in critical minerals downstream processing in South Australia, in a rapidly-growing global clean industry.” The Siviour Project Renascor’s project comprises the Siviour Graphite Mine and concentrator and the downstream 28,000 tonnes per annum PSG production facility. As a response to increasing inbound enquiries from major anode manufacturers, Renascor is considering an expansion to its stage 1 PSG production capacity, as well as an expanded stage 2 PSG capacity. The project is underpinned by Renascor’s Siviour graphite deposit in South Australia, the largest reported ore reserve of graphite outside of Africa, and the second-largest proven reserve in the world. It is targeted to be the first integrated in-country mine and battery anode material operation outside China and exhibits strong clean energy credentials that have helped attract in principle financial support from Australia’s Clean Energy Finance Corporation (CEFC), an Australian Government-backed clean energy technology financier.