Ann: Ancuabe Permitting Update, page-113

@Capraise, Graphite Price is another matter.

The cost of production for synthetic graphite could be reduced to match natural graphite. Never say never. But the quality and properties of synthetic vs natural graphite is something that customers shall determine. Engineers and company executives, especially from China, are over to evaluate potential new mines and feedback is good. I’m not an expert, but companies do due diligence and MOUs when TON has something to offer.

Anyway, it is interesting that USA and the globalisation movement in the past 30 years has not been worried about China controlling most of the graphite and rare earth metals until recently. China is more worried about using graphite and other metals to make steel in the past, and now it is converting towards synthetic graphite anode electric arc furnaces to reduce pollution. Basically, much of China’s graphite resources are developed with less concern for quality and properties, and much of that is outdated and polluted methods, and may struggle to ability to supply good quality flake graphite to meet growth in the battery and expandable graphite markets.

There is no one size fits all when talking about graphite. It is a very versatile and interesting material.

Synthetic graphite is essentially a byproduct of petroleum production and and requires a lot of energy to improve purity. Hazer had an interesting new experiment method being developed as a byproduct of steel production, or something like that. However, if petroleum production goes into decline due to the success of renewable over the next 20 years, it would be a shortage of supply and reduction in ability to keep prices low for synthetic graphite.

The use of graphite in the nuclear industry is more with ultra high purity synthetic graphite, and some natural graphite could have a cost advantage. I think graphite is important in helping prevent nuclear reactors blowing up. Graphene can be made from graphite and also be added to cement to improve strength of nuclear reactors! Anything is possible. China has many nuclear reactors planed for construction.

Anyway, let’s see what happens next with TON and I think the mine construction is a lot faster than 3 years.