Ceylon Graphite's mine construction advances

2019-10-15

Oct. 15, 2019 - Ceylon Graphite Corp is listed on the TSX Venture Exchange. The company is engaged in the development of graphite mines in Sri Lanka. It has received environmental approvals for its K1 mine and has recently gained an industrial mining licence with first production likely in early 2020.

The mining licence is a notable triumph as its only the fourth one issued since the country's independence in the 1960s.

The company holds exploration rights over a land package of around 121km². These rights cover areas of historic graphite production from the early twentieth century and represent a majority of the known graphite occurrences in Sri Lanka.

Ø  Environmental approval and mining licences for K1 project are in hand

Ø  The mine build is advanced and mining is most likely to begin in early 2020

Ø  The price of most categories of graphite have picked up since 2017 but with some slight easing in 2019

Ø  Ceylon Graphite has accumulated a large land package with significant evidence of past production from the glory days of Sri Lanka as the world's prime producer of graphite

Ø  Except for Syrah, most entrants are moderately sized and should not "spoil" the market

Ø  The travails of Syrah (necessitating its production cuts) are curiously positive for the rest of graphite developers

Ø  China has now switched over to being a graphite importer

Ø  Graphite price movements and stockpiled quantities remain essentially at the discretion of the Chinese

Ø  Trump Administration has recently declared Graphite to be a metal critical to US interests