Stratmin schedules commercial production for graphite deposit

The company reports it acquired $2.7 million worth of equipment during the past weeks and it expects to hire 100 workers once its mill is completed.

A study undertaken by the Montreal-based engineering firm SNC Group confirms the profitability of the project, Stratmin reports. The study, it says, supports reserve requirements assuring production for a minimal period of 15 years at rate of 900 tonnes per day.

Stratmin will process 400 tonnes per day at a mill rented from Asbury Graphite Mills of New Jersey at Notre-Dame-du-Laus, Que., and 500 tonnes per day at a mill to be constructed at the deposit. The new mill is expected to be ready for operation by the end of this year.

Average operating costs for processing over a 10-year period will be $28.10 per tonne at the Asbury mill and $24.81 at the new mill, Stratmin says.

Stramin has signed supply and lease agreements with Asbury which have 15-year terms and carry a right of cancellation after the fifth and tenth years. The supply side of the deal commits Asbury to buy at least 10,000 tonnes of graphite concentrates per year.

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