South Star Battery Metals to Spend C$80 Million on Phased Graphite Mine Construction in Brazil

South Star Battery Metals’ (TSXV:STS,OTCQB:STSBF) phased method to bringing its graphite mine to manufacturing in Brazil will see the corporate spend a complete of almost $80 million over the subsequent 5 years, in accordance with CEO Richard Pearce.

“Industrial metallic is one thing (the place) industrial relations should be developed over time. So we’re moving into it earlier than we actually should spend oodles of money,” he mentioned. “So Part 1 is a couple of $10 million CAPEX, Part 2 is about C$37 million or C$35 million CAPEX after which Part 3 is a couple of C$30 million CAPEX. So within the subsequent 4 to 5 years, we’ll be spending C$80 million to spin that as much as 50,000 tonnes of focus every year.”

Part 1 building of South Star’s Santa Cruz graphite challenge in Brazil started in June 2022, and the challenge is predicted to be operational by the tip of 2023, with cashflow commencing in January 2024.

Pearce additionally touted the ESG features of Santa Cruz, with 99 % of its energy coming from hydroelectric services. The corporate additionally has the chance to develop solar energy era capabilities on the web site by a authorities mortgage program.

“Inside Brazil, you’ll be able to arrange photo voltaic services in your web site. You possibly can plug that power again into the grid. And it may actually knock your power value down, significantly because it pertains to peaking energy prices,” Pearce mentioned. The corporate additionally plans to make use of renewable power for drying concentrates, successfully reducing the operation’s carbon footprint.

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