Sarytogan to hit new premium market with Kazakhstan graphite product

Sarytogan Graphite has developed a premium ductile cast-iron using its Micro80C graphite produced from its Kazakhstan graphite project, opening the door to a high-volume, high-margin market segment.

The company has conducted a series of successful trials on its cutting-edge micro-crystalline C graphite product produced in Kazakhstan and plans to make three product types. One product is for lithium-ion battery anodes, another for other battery and advanced industrial uses and the third, Micro80, is for traditional industrial uses.

Ductile cast-iron made with Sarytogan Graphite’s Micro80C passing bending tests.

Sarytogan says it has big plans to place as many carbon units into as many markets as possible.

Micro80C graphite has previously been demonstrated as a highly suitable carbon replacement for grey cast-iron and has now been tested as suitable for the premium-priced ductile cast-iron market.

This demonstration of high-performance in the application of ductile cast-iron opens the spectre to achieve premium prices in the base load market. Furthermore, the recent announcement of investment in this application at the nearby giant Temirtau steel mill is perfect timing for our project and they become a high priority target customer for us.

Sarytogan Graphite managing director Sean Gregory

The market for premium recarburisers is growing. The 6 million tonnes per annum, Qarmet State-owner Temirtau steel mill is one of the largest in the world and late last year received a Chinese investment of US$161 million (A$257m) to produce ductile cast-iron pipes.

Sarytogan Graphite managing director Sean Gregory said: “The Micro80C product family is an important baseload for the Sarytogan Graphite project, both for the early implementation of stage 1a contemplated in the PFS and for the full build out of the project. This demonstration of high-performance in the application of ductile cast-iron opens the spectre to achieve premium prices in the base load market. Furthermore, the recent announcement of investment in this application at the nearby giant Temirtau steel mill is perfect timing for our project and they become a high-priority target customer for us.”

The company benefits from its flagship graphite deposit sitting midway between two of the biggest markets in the world, China and Europe. The 229 million tonne Sarytogan graphite deposit in the Karaganda region of central Kazakhstan grades at a whopping 28.9 per cent total graphitic carbon and is only 190km by road from the industrial city of Karaganda, the fourth-largest city in Kazakhstan.

Sarytogan previously demonstrated its Micro80C graphite to be highly suitable for use as a carbon replacement product in the manufacture of grey cast-iron. Cast-iron is an alloy of iron with 2.14 per cent to 6.67 per cent carbon and 1 per cent to 3 per cent silicon.

Graphite used for grey cast-iron tests typically trades at US$650-700 per tonne (A$1040-$1120/t) in Kazakhstan.

Carbon replacements are a necessary ingredient in the production of pig-iron. Unfavourable contaminants such as phosphorous and sulphur are burnt off during the process, which also burns off carbon which must be replaced in precision quantities to achieve the desired levels for each application.

Sarytogan’s Micro80C graphite has proven to be ideal for the purpose, as the graphite crystallises as flakes making the cast iron hard and brittle.

Cast iron is extremely versatile due to its relatively low melting point, great fluidity and ability to be easily cast. It’s also known for being simple to machine, tough against wear and tear and resistant to deformation.

It is used in a range of everyday applications such as manhole covers, storm grates and park benches and in mechanical appliances in machinery and car parts such as cylinder heads, engine blocks and gearbox cases.

Sarytogan says ductile cast-iron made with Micro80C graphite assimilates 92 per cent of the added material to achieve an alloy composition of 2.8 per cent carbon and 1.5 per cent silicon with low impurities.

The results meet local Kazakh standards as well as equivalent standards in the United States, the United Kingdom and Japan.

Ductile iron is a more modern alloy developed in the mid-20th century. It is created by adding a small amount of magnesium to molten iron, which causes the graphite to form in nodules rather than flakes. This gives the material the ability to bend without breaking.

Ductile iron is known for its excellent strength, toughness, durability and is more resistant to cracking under stress. It is commonly used in high-strength and ductility applications, such as pipes, automotive parts and machinery.

Ductile iron is also more corrosion-resistant than cast iron, making it a better choice for outdoor applications. Historically, ductile iron traditionally has been more expensive than cast iron due to its more complicated chemical makeup.

Sarytogan also has a 20-tonne trial mining sample undergoing milling tests. When completed, a 1t sample of the milled ore will be flown to Australia to produce a flotation concentrate, before it is sent to the US for purification. Eventually, the company will ready hundreds of kilograms of product samples for machine testing, customer trials and validation as a recarburiser.

From there, Sarytogan will focus on placing as many carbon units into as many markets as possible from its high-grade mineral resource, making it one for market punters to watch.

Is your ASX-listed company doing something interesting? Contact: [e-mail]