March 20–26, 2012  Business in Vancouver                                                                                  ...
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Business in Vancouver: Graphite

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Business in Vancouver (March 2012) - Vancouver Miners Scrabling for Graphite Projects

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  1. 1. March 20–26, 2012  Business in Vancouver News 5Vancouver miners daily online edition BUSINESS TODAYscrambling for Green light for $600m Endako Mine expansion The Endako Mine west of Prince George has beengraphite projects given the green light for a $600 million expansion that C ENTRAL. will create about 160 jobs. The molybdenum mine, owned by Thompson CreekNew Chinese export rules and rising demand for electric cars Mining Ltd. (TSX:TCM) and Q U I ET. Sojitz Corp., has receivedturn graphite into North America’s latest hot commodity a Mines Act permit amend- ment from the Ministry of Energy and Mines. B EAUTI F U L.By Joel McKay last month. The expansion will But are the risks worth generate an estimated $90V ancouver’s junior min- ers are rushing to stakeclaims around the world for the rewards? Rajeev said only projects that can produce large flake million to $100 million annu- ally in economic activity. It will also providea commodity that, until re- graphite would likely pay off temporary or even perma-cently, was best known for its for investors. nent work for some of the 36use in pencils. Eagle Graphite, a workers idled by the recent Thanks to an increased Courtenay, B.C.-based com- explosion and fire at thedemand for lithium batter- pany that operates Western Babine Forest Productsies and new export rules in Canada’s only graphite mine mill in Burns Lake.China, graphite has quick- in the Kootenays, anticipates Monday, March 12ly sparked the latest West being ahead of the demandCoast resource frenzy as Zimtu Capital corporate curve for several years. Crosshair welcomes endminers attempt to cash in on development director Ryan “With current orders ex- of Labrador uraniumrising prices. Fletcher: the supply-demand ceeding our ability to pro- mining moratorium Just a few years ago, a factors for graphite projects duce … we feel the time is Vancouver-based uraniumtonne of large flake graphite are compelling right to expand produc- mining company Crosshairsold for between US$500 and tion to several times our Energy Corp. (TSX:CXX)US$600. than 60% of the world’s present capacity,” said Eagle is welcoming a move last Today, prices run between graphite production, has im- president Jamie Deith. week by the NunatsiavutUS$2,500 and US$3,000. plemented new export regu- government of Newfound- Kiril Mugerman, a re- lations to limit the amount “It’s always hard to be land and Labrador to lift asearch analyst at Indus- of graphite that’s sold to cus- moratorium on the working,trial Alliance Securities in tomers beyond the Middle early because you’re production, mining andMontreal, said miners are Kingdom. development of uranium onhitting the ground in search “They’re starting to hoard, sticking your neck out, Labrador Inuit Lands.of graphite in Canada, Eur- and it’s the same story that’s The moratorium hadope, Africa and Australia. happening with rare earth but being early also been in effect since April In fact, so many com- elements,” explained Paul 2008.panies have taken up the Gill, president and CEO of means you get a lot of Crosshair president andcommodity in the last few Vancouver’s Lomiko Metals CEO Stewart Wallis said:months it’s hard to separate (TSX-V:LMR). the upside as well” “We’re excited to get back inthe serious businesses from His company’s share there to work and advancethose that have jumped on price has spiked $0.15 in re- – Ryan Fletcher, our projects,” he said.the bandwagon. cent weeks as it continues corporate development director, Monday, March 12 “Consider there’s three to to explore the Quatre Milles Zimtu Capitalfive [new] projects appearing early-stage graphite project Review of jet fuelevery day, it’s hard to know in Quebec. For Mugerman, the only pipeline suspendedwho to look at,” Mugerman Other companies such as properties worth focusing on Vancouver Airport Fuelsaid. Focus Metals (TSX-V:FMS) are those that can be mined Facilities Corp. (VAFFC), Similar to the ongoing a nd Nor t her n Gr aph- via open-pit and have high- the proponent of a con-demand for rare earth ele- ite (TSX-V:NGC) have also grade, large flake graphite troversial jet fuel pipelinements, graphite has become enjoyed rising share prices deposits. through Richmond, has beenthe latest commodity craze and have proven there’s Still, there are so many granted a temporary sus-thanks to its use in laptops, money to be raised for graph- juniors rushing into graph- pension of the review of thesmartphones and other ite projects. ite projects now that he said project’s application for angadgets. L a st yea r, Nor t her n it would be some time before environmental assessment Siddharth Rajeev, an Graphite hit the market the true contenders emerge. certificate.analyst at Fundamental Re- with a $4 million IPO, while “Investors need to be According to the VAFFC,search in Vancouver, said the Focus closed a $20 million careful … it’s very easy in the request for suspensionhighly conductive commod- private placement. Canada to pick up projects was made to allow the VAFFCity’s use in lithium batteries Ryan Fletcher, director in graphite … doesn’t mean to complete some studies inhas increased its popularity. of corporate development at it’s the right purification, the response to requests from There’s more graphite Vancouver’s Zimtu Capital right grade or the right flake Environment Canada forthan lithium in the average (TSX-V:ZC), said his com- distribution.” information on the potentiallithium battery. pany started snapping up For companies such as effects of a fuel spill. “The biggest boosting is graphite projects after other Zimtu, however, the possible Tuesday, March 13going to come from the in- graphite-focused explorers rewards outweigh the riskscreased demand for lithium raised $40 million to $50 for now. theloden.com Full stories and otherbatteries in cars,” said Ra- million on the market in the Said Fletcher: “It’s al- local business news at 1177 Melville Streetjeev. “The demand growth space of a couple months. ways hard to be early be- www.biv.com/businesstoday Vancouver Canadafor graphite that can be used “We saw an opportunity cause you’re sticking yourfor these applications can be in this space, and we acted neck out, but being early also Daily business news t 604 669 5060 1 877 225 6336high.” on it,” said Fletcher, whose means you get a lot of the direct to your inbox! On top of that, China, company has announced upside.” • Sign up atwhich accounts for more three graphite deals in the jmckay@biv.com www.biv.com/newsletters

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