Sarytogan Graphite has been granted a 25-year mining licence by the Kazakhstan Ministry of Industry and Construction for its graphite mine in the Karaganda region.
Covering an area of 8.88km², the licence includes an option to extend for an additional 20 years and thereafter until the mineral resource is fully depleted.
The mine secured an environmental permit last month.
The licence stipulates a minimum annual expenditure of 8,938 monthly calculated indicators (MCIs), indexed yearly.
Sarytogan is also required to support the Kazakh industry by ensuring the use of at least 50% of domestic works and services in production operations, dedicating 1% of production costs to training local personnel and investing another 1% in research and development.
Additionally, an annual contribution of 1,000 MCIs, around $7,500 in 2025, is to be made for the socioeconomic development of the region.
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By GlobalData
The company is advancing its ‘customer-focused’ early works for the feasibility study.
About 20 tonnes (t) of samples from the trial mine will be processed in Kazakhstan, with 1t planned to be sent to Australia for flotation in the first quarter (Q1) of 2025 and purification in the US in Q2 2025.
Sarytogan managing director Sean Gregory said: “The grant of the mining licence is a significant milestone for the Sarytogan Graphite Project that secures the tenure and takes this activity off the critical path for the future mine development.
“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.”
Situated 190km from Karaganda, the Sarytogan Graphite Deposit was first explored in the 1980s and exploration resumed in 2018 by Sarytogan’s subsidiary, Ushtogan.
AMC Consultants have estimated an Indicated and Inferred Mineral Resource of 229 million tonnes at 28.9% of total graphite carbon for the project.
The company has produced bulk flotation concentrates with over 80% carbon content and achieved approximately 99.9% carbon purity through thermal purification.
A prefeasibility study completed in August 2024 proposed a staged development plan to align with market penetration, reduce initial capital outlay, and ensure financial returns.
