Tirupati Graphite PLC (LON:TGR) has reported on progress made in the redevelopment of hydropower facilities at the Sahamamy graphite project in Madagascar and on the initiation of further studies for hydropower across both its Madagascar graphite projects.
The initial 100Kw hydropower facility at Sahamamy will result in an estimated ongoing saving of around 10% in operating costs per tonne and a 50% reduction in carbon emissions.
The company is now accelerating further studies and detailed planning on the back of the earlier conducted prefeasibility studies for an additional 900Kw hydropower capacity to provide 100% renewable power generation for the next two production modules.
Meanwhile, improved monthly sales from Sahamamy indicate that Tirupati’s operations are starting to recover from the impact of the COVID-19 pandemic.
Prices have been stronger, and Tirupati continues to advance various work streams to increase primary flake graphite capacity in Madagascar to 12,000 tonnes per annum during the second quarter of 2021.
“Increasingly, consumers and manufacturers alike realise that zero carbon at use is just part of the story and that there is a need to look holistically at the processes along the whole supply chain,” said Shishir Poddar, chief executive of Tirupati.
“Accordingly, as highlighted by the strong demand for our primary flake graphite, there is significant preference for the lowest impact deposits around the world. With this in mind, we remain focused on delivering eco-friendly operations, and being a green source in the supply chain for EVs and other green applications. Our hydropower renewable energy initiatives are part of this strategy, which will help us reduce our carbon footprint by almost 50% and also result in cost savings.”
He went on to talk about the likely uplift in production.
“Additionally, given the strong demand for our product, we are excited to have accelerated the development of our primary flake graphite operations in Madagascar to an initial 12,000 tonnes per annum in the second quarter of 2021. We are on track to commission the 9,000 tonnes per annum plant in Vatomina which will enable us to fast-track the development of markets for our three business units in this opportune time of strong and growing demand for our products, besides enhancing our significance in the global ex-China graphite markets.”