10% Reduction in Estimated Construction Costs of Kellyton Graphite Plant
Graphite Fines Offtake Agreement with Hiller Carbon
Qualification Line Update
CENTENNIAL, Colo.–(BUSINESS WIRE)–Westwater Resources, Inc. (NYSE American: WWR), an energy technology and battery-grade natural graphite development company (Westwater or the Company), is pleased to announce its updates for the third quarter ended September 30, 2024.
2024 Third Quarter Highlights
During the third quarter, Westwater continued to evaluate its plant design, construction schedule and cost for Phase I of the Kellyton Graphite Plant. As a result, Westwater has lowered the estimated cost of Phase I to $245 million, down from the previous estimate of $271 million. This represents a decrease in estimated costs of $26 million, or 9.6%. The decrease in estimated costs primarily relates to further design optimization and savings in steel, piping and equipment installation. The revised estimate of $245 million includes an 11% contingency and 2% escalation factor on the remaining uncommitted spend.
Westwater’s management team continues to perform at a high-level, and the downward revision to Phase I estimated costs is another significant step toward closing the Kellyton debt financing, said Terence J. Cryan, Westwater’s Executive Chairman.
As previously announced in September, Westwater entered into a binding off-take agreement for the supply of the Company’s graphite fines material (Graphite Fines) with Hiller Carbon, LLC (the Fines Offtake Agreement), a leading supplier of pelletized materials to the steel and foundry industries. Pursuant to the terms of the Fines Offtake Agreement, the Company will supply natural Graphite Fines material from its Kellyton Graphite Plant to Hiller Carbon’s plants located within the U.S. Graphite Fines are produced as a byproduct during the CSPG spherodizing process, one of the processing steps related to producing the Company’s battery anode natural graphite, which remains the Company’s main focus. The Company expects the Graphite Fines production to be approximately 14,000 mt per year, based on the anticipated annual Phase I CSPG production of 12,500 mt per year, and delivery of the Graphite Fines to Hiller Carbon to occur when the Kellyton Graphite Plant begins production.
During the quarter ended September 30, 2024, Westwater continued to receive and install equipment for its qualification line at the Kellyton Graphite Plant. The qualification line is…
Click Here to Read the Full Original Article at All News…
