Total cost of the project: 430 – 1,800 mln RUB
Capital planned to be raised: 430 mln RUB and more
Investment purposes: modernization of production complex
Investment options: Investment in return for a share, loan investment
Internal rate of return (IRR): 24,2%
Planned pay-off period: 5.5 years
The biggest amorphous graphite deposit (96.7 mln tonnes) with high quality of ore (carbon content is up to 80%) in the Russian Federation is located in Krasnoyarsk Region; the graphite extraction and production for foundry industry is based on this deposit. Growth potential of the global graphite market is predicted to be 7% per year in the period between 2020 and 2025, which is now can be seen in sustainable growth of the graphite products demand in the Russian Federation. These factors are key preconditions for modernization of amorphous graphite production in Krasnoyarsk.
The project has two modernization scenarios:
– general modernization – up to 20,000 tonnes per year, with 0.3-0.5% of sulphur in the end product;
– deep modernization – up to 46,000 tonnes per year, with 0.1% of sulphur in the end product.
In case of deep modernization, the technological complex consisting of 19 buildings and 2 structures can be transferred and the land plot on the bank of the Yenisey River in Krasnoyarsk may be vacated for development projects.
The project is at the planning stage. Natural grinded cryptocrystalline graphite production is in operation; there are licenses for graphite ore extraction. Modernization plan is prepared considering evaluation of international clients and anticipated demand levels. The availability of clients from Europe and South-East Asia ready to conclude supply contracts for more than 40,000 tonnes per year with decreasing of sulphur content to 0.1% in end product is confirmed.