Renascor Successfully Obtains A$185 Million EFA Loan for Siviour Graphite Project

Export Finance Australia (EFA), Australia’s export credit agency, has greenlit a loan facility of A$185 million to expedite the development of Renascor Resources’ Siviour graphite project in South Australia, specifically focusing on the upstream graphite concentrate operation. This financial backing is sourced from the Australian Government’s A$4 billion Critical Minerals Facility, overseen by EFA. The loan comprises a A$150 million term facility along with a A$35 million cost overrun facility.

These funds will facilitate the establishment of the graphite concentrate operation and subsequent purified spherical graphite facility, positioning Australia as a significant contributor to the electric vehicle battery supply chain. Renascor unveiled the Siviour Battery Anode Material Study on August 8, 2023, detailing the accelerated commencement of the BAM Project, which is anticipated to grant Renascor an early advantage by ensuring a dependable supply of graphite concentrates sourced from Australia.

Leveraging the Siviour Graphite Deposit, recognized as the largest reserve outside of Africa, and a processing facility in South Australia, Renascor plans to employ an eco-friendly purification process to manufacture purified spherical graphite. The company is currently progressing with engineering designs for the mineral processing plant and engaging in discussions regarding binding offtake agreements with potential partners. The loan facility follows preliminary financial support from EFA, with the drawdown subject to customary conditions and the completion of due diligence. EFA's due diligence on the graphite concentrate operation has uncovered no critical issues. Renascor and EFA are now collaborating to finalize due diligence and documentation.

Meanwhile, Alpha HPA has secured A$400 million from the Australian Government for a high-purity alumina processing facility in Gladstone, with conditional approval for A$320 million in project loans and an A$80 million cost overrun facility.

Renascor's managing director, David Christensen, expressed satisfaction with the A$185 million loan approval, emphasizing its pivotal role in expediting the construction of the upstream portion of the BAM Project. He highlighted the phased development strategy, providing Renascor with an early market entry advantage, leveraging a reliable supply of natural graphite concentrates from Australia, a jurisdiction aligned with the Inflation Reduction Act. This strategy enables the generation of early cash flows, acceleration of graphite concentrate production, cultivation of valuable offtake relationships with leading anode suppliers, operation and optimization of the PSG Pilot Plant and PSG product qualification, and the mitigation of risks associated with subsequent downstream PSG processing facility development.

EFA, Australia's export credit agency, facilitates commercial finance for export trade and overseas infrastructure development, catering to a diverse range of clients including small and medium-sized enterprises, large corporates, foreign governments, and infrastructure projects. By assisting Australian businesses in expanding their global reach, EFA's financial support contributes to Australia's economic security and regional resilience. Additionally, EFA manages the Australian Government's National Interest Account, which encompasses vital initiatives such as the Critical Minerals Facility, the Defence Export Facility, and lending for the Australian Infrastructure Financing Facility for the Pacific.