The European Bank for Reconstruction and Development (EBRD) has invested AUD 2.64 million (EUR 1.64 million) in Sarytogan Graphite, an Australian-listed company focused on developing a graphite project in Kazakhstan. This investment was made at 16 cents per share, double the market price of 8 cents at the time, marking the first of two planned investments by the EBRD.
The announcement led to a 25% rise in Sarytogan’s share price during trading, reaching 10 cents. This funding enables Sarytogan to advance its graphite project near Karaganda, Kazakhstan, including key steps such as bulk sampling and the production of graphite samples for customer testing. A second tranche of investment from the EBRD, expected in early 2025, will bring its total investment to AUD 5 million (EUR 3.1 million), increasing its stake to 17.36%. The EBRD has also sought approval to increase its ownership to a ceiling of 19.99% through future placements.
The project benefits from strong support from the Kazakh government and aims to meet high technical and environmental standards. It boasts a resource of 229 million tonnes at 28.9% total graphitic carbon (TGC), equating to approximately 66 million tonnes of contained graphite, while processed samples have achieved a thermal purification purity of up to 99.998%. Future plans include producing 50,000 tonnes of three specialized graphite products annually.
This development has significant implications for European graphite producers and buyers. The involvement of the EBRD underscores the importance of securing critical mineral supply chains. For European producers, this project’s high-grade graphite and scalable processes may increase competition. Buyers, however, could gain access to a new, reliable source of high-purity graphite, potentially reducing supply chain risks and costs in the long term.
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