INDIAN GRAPHITE RESOURCES : A VIABLE ALTERNATIVE TIRUPATI GRAPHITE RESOURCES & THEIR DEVELOPMENT Presentation by Shishir Kumar Poddar Managing Director TIRUPATI CARBONS & CHEMICALS (P) LTD. Jharkhand, India
Outline of Presentation Background & Concerns Development of Alternative Resources Advantage India Flake Graphite Availability in India Graphite Occurrence & Exploitation, State Wise Tirupati Mineral Resources Tirupati Processing Facilities Tirupati Growth Plans & Medium Term Vision Acknowledgements
Introduction : Background & Concerns The world is dependent upon China for nearly 80% of its requirements of Natural Graphite. Mining & Processing of Natural Graphite could not develop in other parts of the world during 1991 2010 in wake of extremely low prices from Chinese sources. Over the past 3 years, shift in policy & regulation of Graphite trade in China & change in Graphite trade dynamics world over, has resulted in Chinese Graphite prices increasing many fold, and availability has become a concern. The main reasons leading to the present situation are: 1. Elimination of Export benefits and Imposition of export Tax. 2. Implementation of Environment & Mineral Regulation laws & rules. 3. Increased in-house Chinese consumption. 4. Increased consumption in refractory, steel making, Aluminum, mobile energy & other new high tech applications. 5. Partial rationalization of Chinese Currency valuations. The situation is explained by the following Charts:
Introduction : Background & Concerns 1200 1000 Estimated Country wise Natural Graphite production 2010 ( KTPA ) 1000 800 600 400 200 0 80 50 30 10 60 China Brazil India Canada Africa Others
Introduction : Background & Concerns 600 500 Estimated Country wise Natural Graphite Exports 2010 (KTPA) 500 400 300 200 100 0 20 2 20 7 20 China Brazil India Canada Africa Others
Development of alternative resources Users around the world are looking forward to development of alternative resources to reduce dependence on Chinese sources. This situation brings an opportunity for Graphite producers in other parts of the world to enhance capabilities. Other than China, availability of Natural Graphite as a mineral, with high potential for increased exploitation, are known in the following countries: 1. India : Estimated processed Natural Graphite production in 2010 50KTPA 2. Canada : Estimated processed Natural Graphite Production in 2010 30KTPA 3. Madagascar : Estimated processed Natural Graphite Production in 2010 05KTPA 4. Brazil : Estimated processed Natural Graphite Production in 2010 80KTPA 5. Australia : Currently no production, expected to start in 2012. 6. Sweden : Activities Restarting, situation coming up in the following presentation. In addition to the above, increased Natural Graphite availability can be expected from African Countries like Zimbabwe, South Africa & Madagascar in the long run.
Advantage India India possesses large mineral resources of Crystalline Graphite. With mineral resources in hand, India is placed with distinct advantages, in aggressive development of Graphite mining & Processing, to be A VIABLE ALTERNATE SOURCE FOR THIS VITAL MINERAL: 1. Favorable Natural Conditions : The areas of Graphite deposits have favorable climatic conditions, without extremes, and required Natural Resources, for non stop all the year round operations. 2. Balanced operating costs : As compared to advanced countries, operating costs in India shall be lower for obvious reasons, including effect of balanced climatic conditions. 3. Experience & Expertise : Graphite mining & processing is in continuous operation for more than four decades meeting internal demand. Crystalline Graphite with over 96% purity is produced by India with floatation technology. For purification to >99% purity, eco friendly Non HF chemical process is developed. 4. Stable Trade Policy : India offers favorable and stable trade policy with regulations in place for Foreign Direct Investments, Mineral Development & Regulation, Environmental issues, International Trade and overall, an investment friendly climate.
Occurrence of Flake Graphite In India Determined resources state wise as reported by IBM are marked below. Of these Commercial exploitation is presently carried out in those marked in Green. Jammu & Kashmir 62.74 MT Rajasthan 1.91MT Gujarat 3.35MT Maharashtra 1.16MT Karnataka 0.26MT Kerala1.45MT Arunachal 72.75MT Jharkhand 10.37MT Orissa 5.42MT Chatish garh 1.01MT Andhra pradesh 0.43MT Tamilnadu 7.91MT
Flake Graphite Availability in India Determination of available Graphite resources has been done by Geological Survey of India, Departments of Geology in provinces of occurrence, Research institutions working on mineral processing and organizations involved in the business of Natural Graphite. Indian Bureau of Mines released its last report on determined Graphite resources in India as on 1 st April 2005, which confirms the following resources as per UNFC norms: 1. Reserves : 010.75 Million Tons 2. Remaining Resources : 168.77 Million Tons Mining & Processing of Graphite are at present done in Jharkhand, Orissa & Tamilnadu States, where increased out put are being planned and executed mainly by existing mine owners and processers. Brief on these are discussed below. Andhra Pradesh, Chattisgarh & Arunachal Pradesh are promising areas where Flake Graphite deposits occur and favorable conditions including Provincial Government support can pave the way for exploitation of the mineral. Prospects in these states are also discussed below.
Occurrences of Crystalline Graphite Deposits in Orissa Sambalpur Bolangir Phulbani Kalahandi Raigada
Exploitation of Flake Graphite in Orissa Flake Graphite mining & processing in Orissa started in early nineteen seventies. Operational mining areas exist is southern and south western parts of the state. The known resources in the state are mostly held under mining rights. Fixed Carbon in ROM Graphite ranges from 5-15% in general, with some pockets up to 40% Graphitic content, mainly crystalline in nature. The largest mine owners & processers in the region are Agarwal Graphite Industries, producing about 5000TPA processed Flake Graphite with plan to double their capacity over the next 2 years. Other mine owners and processors include Pradhan Industries, G. R. Graphite Industries & T. P. Minerals (P) Ltd., each producing about 2400 to 3000 TPA processed Graphite, and about 15 small producers accounting for about 12000 TPA processed Graphite with up to 80% purity. Presently accounting for about 50% of India s Processed Graphite output, the growth potential in the state mainly exists with the largest producer.
Occurrences of Crystalline Graphite Deposits in Tamilnadu Madurai Sivagangai
Exploitation of Flake Graphite in Tamilnadu Tamilnadu Minerals Ltd. A unit of government of Tamilnadu, is the only company engaged in mining & processing of Graphite in the state, having mining rights over a strike length of about 3 Km in Sivagangai and Madurai districts. Most of the reserved in the state are held by this unit. ROM Graphite mined in the area reports an average 14% Fixed Carbon crystalline Graphite. The present processed Graphite output from the unit is 6000TPA. No expansion plans are known for this company. Being an undertaking of the government, they are market driven but sell what they produce on as is where is basis by way of tenders of sale. The quality of mineral available however, has a high concentration of large flakes and is thus a good resource. GSI has conducted geological surveys in areas adjoining the deposits of TAMIN and estimated reserves of 0.76 MT in a strike length of about 1 KM. Systematic exploration in the area has high potential of discovering additional resources in the region. Since these resources have a better purity and larger average particle size distribution, it makes commercial sense to conduct such exploration.
Occurrences of Crystalline Graphite Deposits in Jharkhand Palamau Garwha Latehar
Exploitation of Flake Graphite in Jharkhand Exploration of Graphite for Commercial purpose in my home state Jharkhand was pioneered by my father Mr. K. K. Poddar, who also set up the first mining and processing facility in this state in 1977 as Chotanagpur Graphite Industries, now producing 4000TPA processed Crystalline Graphite with purity up to 94% FC, and having capability to produce > 96% purity Crystalline Graphite by flotation process. Having worked for this unit for about 15 years, to expand the presence of our family in the trade, me & my brother Hemant, who is also present amongst us, promoted our second unit Tirupati Carbons & Chemicals (P) Ltd., and set up another mining & processing facility now producing another 4000TPA Crystalline Graphite with purity up to 90% FC. We work as two independent companies having separate mineral and other resources, but collectively the largest producer of flake Graphite in India, pursuing aggressive growth plans to provide a dependable source for Crystalline Graphite from Jharkhand and plans to expand in other locations of viable deposits in India and other countries. In addition to our facilities, there exist six units in our state collectively producing 4000TPA Processed Graphite with purity up to 80% FC.
Occurrences of Crystalline Graphite Deposits in Arunachal Pradesh Upper Subansari Lower Subansari Lohit East Siang
Potential of Exploitation of Flake Graphite in other states Arunachal Pradesh: 1. Located in North Eastern India, Arunachal is a hill state and is lesser developed. However, it promises large deposits of 72.76 MT Natural Graphite. Geological survey of India has conducted drilling in certain areas in the state and reported deposits of Crystalline Graphite with Fixed Carbon ranging up to 15%. Samples collected have also been analyzed by mineral processing laboratories which confirm technical viability of the available mineral. 2. The provincial Government is keen on developing mining and mineral based industries in the state and provides various incentives and facilities for setting up of Industrial units. The state is however hill area in foothill of Himalayas with connected limitations. 3. Since the estimated reserves are large and reports suggest higher Carbon Contents than average available elsewhere, commercial exploitation of the deposits can be prima facie viable. It however needs detailed exploration and commercial assessment of the findings presently available to establish economic viability.
Potential of Exploitation of Flake Graphite in other states Andhra Pradesh 1. Mining & Processing of Crystalline Graphite was carried on in this state in areas adjoining Orissa deposits, way back in 1960 s and early 1970 s. These operations produced Flake Graphite, mainly for clay bonded crucible manufacturing, in a small scale by primitive methods and stopped upon start of better organized operations in Orissa and Jharkhand. 2. Reported reserves fall in Khammam, East Godavari, West Godavari, Vishakhapatnam, Srikakulam & Vijayanagram districts and amount to only 0.43 MT. Since the formation and Geology of the area are same as Orissa Deposits, detailed exploration is expected to substantially increase the reserves with high concentration of large flakes. Chattisgarh 1. Reserves are reported from Sarguja District adjoining Jharkhand, having the same Geological formations as Palamau district. Exploration in the areas have confirmed resources of 1.01 MT, although no commercial exploitation has been done in the area. 2. This area also has high potential for setting up new facilities & Exploration & Exploitation is expected to establish further reserves in the area.
Tirupati Graphite Resources & Their development Mining Areas Held by us: Tirupati owns and / or operates the following Flake Graphite Mines: A. Mineral rights owned by us 1. Rabda Graphite Mines Held under Mining Lease 2. Gaura Graphite Mines Held under Mining Lease 3. Ekta Graphite Mines Held under Prospecting License B. Mining Rights under Operational Agreements : Yielding 20000TPA ROM Graphite 1. Murma Graphite Mines. 2. Dhawadih Graphite Mines. 3. Dulsulma Graphite Mines We discuss in detail, the mining rights held directly by us.
Geological Plan of Rabda Graphite Mines December 2011
Mining Rights held by us. 1. Rabda Graphite Mines About the Deposit : Spread over an area of about 75 Acres, the area has seven parallel Graphite veins running East to West and dipping south at an angle of 75-80 degree from Horizontal. Salient details about the deposit are as below: 1. The width of the veins show a swelling tendency with depth & Continuity is established up to a depth of 100M from the surface. 2. The average Fixed Carbon of ROM Graphite is 10% 3. Present estimates establish reserves of 1.8 MT as per UNFC Norms. In our own assessment, the reserves exceed 3 MT up to a depth of 100M. Status of Exploitation : Presently being operated at an output of 24KTPA, the mine is under development for increasing the output to 120KTPA to meet increased Raw material requirements for expansion of our processing operations.
Surface Geological Plan of Ekta Graphite Deposit
Mining Areas held by us 2. Gaura Graphite Mines This is a small hillock area spread over 16 Acres, and is at present a virgin area with outcrops of Graphite veins at multiple points suggesting 2 Parallel veins which have been established by core drilling. The samples suggest higher purity deposit in the area as cores at a depth of about 30M analyzed up to 20% Fixed Carbon. Present estimates suggest deposit of about 0.3MT. We are undertaking further exploration of the area and it shall be developed as an alternate source. 3. Ekta Graphite Deposit Spread over about 32 acres, this area has been recently granted to us under prospecting license. It promises a large deposit as 10 parallel veins show outcrops along a strike length of over 200M descending from a hillock. The surface vein widths are also higher than what are seen in other deposits. Detailed exploration for determination of reserves is under planning and shall be completed by February 2012. However, preliminary investigations have revealed that the deposit here are larger, higher purity & larger average particle size that Rabda deposit.
Processing facilities 1. Rajderwa Graphite Processing Plant: With a capacity to process 144Tons ROM Graphite per day, yielding 4000TPA finished Graphite, our Rajderwa facilities came into operation from 15 th November 2010. The plant is possibly the most modern Graphite processing plant in our country, employing simple but effective technology, and uses basic processing equipments designed and manufactured in house by us. Since I have seen many Graphite Processing lines in Qingdao area of China, I can surely say that the processing technology and expertise possessed by us is far superior and effective as compared to Chinese plants. It records a recovery of over 88% of Graphite from ROM. Since we maintain confidentiality on our process flow sheets, plant layout and equipment designs, we are unable to present pictures giving these details. A few glimpses are attached in the following sheet although.
Pictures of the processing plant CLOSE UP VIEW OF A CELL ROM GRAPHITE PART OF PROCESSING PLANT
Processing Facilities 2. Vishakhapatnam finishing Plant Our company started its operations by setting up finishing facilities of Processed Graphite at Vishakhapatnam, a port city in Andhra Pradesh, eastern India. We outsourced processed Graphite from different sources, including Chinese, and processed these for selling to our Indian Customers. With the current situation, outsourcing has become an issue and as such the operations here reduced substantially. We are now working on locating deposits in the area and shall set up mining & processing facilities once we have mineral resources. I now proceed to our growth plans
Tirupati Growth plans Plans in our Home State Aim : Expand facilities in Jharkhand to increase capacity by additional 12000TPA ( Total 16000 TPA) finished Graphite with up to 96% FC Implementation has commenced, both for development of mine for increased output & for installation of additional processing facilities, and will be completed mid third quarter 2012. Investment estimated for the project is about USD 3 million. Aim : Set up facilities for manufacture of Natural graphite for value added applications like mobile energy These are planned under Techno Commercial arrangements with other stakeholders in the field. As per schedules we are working on, Manufacturing of these products are expected to start early 2013. Aim : Obtain additional mining rights in home state to ensure long term Raw Material security and secure Raw Material for further expansion We are conducting Surveys for identification of potential areas and applications for mineral concessions shall be filed over the next 2 months. The objective is to have reserves of at least 10 MT in hand within 2012.
Tirupati Growth plans Plans in other Indian States with potential Deposits : Aim : Identify and obtain mining rights in provinces other than Jharkhand and set up facilities for mining & processing Identification of potential areas is in progress. Upon obtaining deposits, we shall set up facilities with a minimum capacity of 6000TPA finished Graphite at each location based on yield capabilities of the deposit. The present target provinces for us are those we have discussed earlier in our presentation. Working on possibilities in other countries having mineral resources: Aim : Work on possible joint ventures for exploitation of mineral resources in other countries with investor friendly foreign investment policies - We are open to discussions with stakeholders having mineral rights in other countries for setting up facilities for exploitation of deposits. We are also open to undertaking exploration in areas where Natural Crystalline Graphite deposits are known and have expertise in Remote Sensing, Geophysical & Geochemical Surveys and invasive determination of reserves from planning to implementation stage. December 2011
Tirupati Growth plans Medium term Goals and strategy Enhance capabilities to manufacture 50000TPA Processed Natural Crystalline Graphite by 2015 and meet the requirements of entire spectrum of applications, including but not limited to high purity and hi-tech applications in Mobile energy and energy storage, Nuclear Power, Lubrication, friction materials etc and in conventional applications in Refractory, steel making, writing instruments, Crucibles etc. Build resources at geographically diversified locations so as to ensure continuity of supply to customers even in force majeure situations or cases of exigencies. Associate with institutions and companies with expertise in the field for hi-tech applications to build capabilities. Build partnerships with Stakeholders, Consumers & companies in Graphite Trade world wide and become a reliable & preferred source for their requirement of Crystalline Graphite. December 2011
Acknowledgements Our sincere thanks to all present for a patient hearing. Special Thanks to Industrial Minerals Events for giving me the opportunity to address this august gathering Special Thanks to representatives of the media for their presence and patient hearing. We acknowledge inputs from reports of Industrial minerals, Indian Bureau of Mines, Geological Survey of India, National Metallurgical Laboratory, Roskill report on natural graphite, and confirm our presentation is not a reproduction of data or analysis from any one source but a compilation based on information from many sources and our own trade intelligence. THANK YOU