I think someone posted the below link on another thread, but i...

I think someone posted the below link on another thread, but i thought it worth re-posting here.

I originally invested in Kibaran because of the monopoly China holds on global graphite supplies and their increasingly expansionist posturing in recent years. I suspected graphite was highly susceptible to geopolitical uncertainty as a result. China controls ~67% of the natural graphite market, and 100% of the spherical graphite market (what i didn't accurately predict was how quickly the resources within China is dwindling with some even reporting China will become a net-importer by 2020).

It was the Germans and their contracts which sold me on Kibaran. And if you haven't wondered why they are still walking hand-in-hand with Kibaran, you probably should. Not all graphite is equal. Kibaran has even announced a handful of meetings between themselves, Tanzanian officials and most importantly KfW bank. 

Trump even weighed in recently by adding a 10% tariff on Chinese graphite. This will increase to 15% later (below link). 

I mention this because when the market responds in panic to Trump and geopolitical tensions, there's a couple things worth remembering;

 - Europe and China have dedicated policies to move to EV's;

 - This uncertainty actually favours the graphite market ex-China (becoming cheaper in comparison to Chinese graphite because of the absence of tariffs, for the US market);

 - KfW Bank (who lend on an ongoing basis in Tanzania and are based out of the German embassy. They are a national bank) are assisting Kibaran with clarification on the mining legislation so their lending request (between KfW and KNL) can be finalised;   

 - Not all graphite is equal; 

 - It is these tensions which help make graphite the intriguing investment it is.

https://unauthorised investment advice/resources/how-asx-graphite-producers-could-win-from-donald-trumps-china-tariffs/