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

1. March 20–26, 2012 Business in Vancouver News 5
Vancouver miners daily online edition
BUSINESS TODAY
scrambling for
Green light for $600m
Endako Mine expansion
The Endako Mine west of
Prince George has been
graphite projects
given the green light for a
$600 million expansion that C ENTRAL.
will create about 160 jobs.
The molybdenum mine,
owned by Thompson Creek
New Chinese export rules and rising demand for electric cars Mining Ltd. (TSX:TCM) and Q U I ET.
Sojitz Corp., has received
turn 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 $90
V ancouver’s junior min-
ers are rushing to stake
claims 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 provide
a 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 36
use in pencils. Eagle Graphite, a workers idled by the recent
Thanks to an increased Courtenay, B.C.-based com- explosion and fire at the
demand for lithium batter- pany that operates Western Babine Forest Products
ies and new export rules in Canada’s only graphite mine mill in Burns Lake.
China, graphite has quick- in the Kootenays, anticipates Monday, March 12
ly sparked the latest West being ahead of the demand
Coast resource frenzy as Zimtu Capital corporate curve for several years. Crosshair welcomes end
miners attempt to cash in on development director Ryan “With current orders ex- of Labrador uranium
rising 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 uranium
tonne of large flake graphite are compelling right to expand produc- mining company Crosshair
sold 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 Nunatsiavut
US$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 a
search 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 and
Montreal, said miners are Kingdom. development of uranium on
hitting 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 had
ope, 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 and
commodity 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 in
the serious businesses from His company’s share there to work and advance
those 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 Capital
five [new] projects appearing early-stage graphite project Review of jet fuel
every day, it’s hard to know in Quebec. For Mugerman, the only pipeline suspended
who to look at,” Mugerman Other companies such as properties worth focusing on Vancouver Airport Fuel
said. 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 pipeline
ments, graphite has become enjoyed rising share prices deposits. through Richmond, has been
the 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 the
smartphones and other ite projects. ite projects now that he said project’s application for an
gadgets. 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 suspension
highly conductive commod- private placement. Canada to pick up projects was made to allow the VAFFC
ity’s use in lithium batteries Ryan Fletcher, director in graphite … doesn’t mean to complete some studies in
has 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 for
than lithium in the average (TSX-V:ZC), said his com- distribution.” information on the potential
lithium 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 13
going to come from the in- graphite-focused explorers rewards outweigh the risks
creased demand for lithium raised $40 million to $50 for now. theloden.com
Full stories and other
batteries in cars,” said Ra- million on the market in the Said Fletcher: “It’s al-
local business news at 1177 Melville Street
jeev. “The demand growth space of a couple months. ways hard to be early be-
www.biv.com/businesstoday Vancouver Canada
for graphite that can be used “We saw an opportunity cause you’re sticking your
for 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 6336
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On top of that, China, company has announced upside.” • Sign up at
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