International Graphite Ltd (ASX:IG6, OTC:IGRPF) has signed a Heads of Terms agreement with Wogen Pacific Ltd to support product sales, marketing and graphite concentrate supply for its Collie Micronising Facility in Western Australia.
The agreement is designed to help International Graphite establish sales channels into the Asia-Pacific market while supporting feedstock supply for future production growth at Collie.
Wogen Pacific, a Hong Kong-based subsidiary of Wogen Ltd, will buy a minimum of 3,000 tonnes per annum of micronised graphite from the facility from the point of commercial production, for exclusive distribution to customers in the Asia-Pacific region.
Agreement highlights
The company has also committed to sourcing up to 10,000 tonnes per annum of flake graphite concentrate feedstock to supply the Collie facility as production increases over time.
Terms of sale will be agreed on a spot basis, with International Graphite also gaining access to Wogen’s supply chain finance solutions to support operations and capital efficiency.
The Heads of Terms is non-binding and is intended to be replaced by binding agreements as the facility approaches commercial production.
Agreement targets Asia-Pacific graphite markets
International Graphite managing director and CEO Andrew Worland said Wogen’s global sourcing, trading, logistics and marketing capabilities would support the company’s Collie operations as it moved toward production.
“Wogen has deep experience in the global graphite supply chain with an outstanding reputation and a strong presence across all major markets,” Worland said.
“This is an important step in our strategy to partner with market leaders, and we look forward to growing our relationship with Wogen as we move into production.”
Wogen Ltd CEO John Craig said the agreement would help bring a new supply of high-spec industrial graphite products to Asia-Pacific customers, particularly in Japan and South Korea.
The initial sales term is three years from first commercial-scale production, while the supply term is three years from first shipment. Immediate pre-production marketing will begin, with binding agreements to be finalised before commercial-scale production starts.
Collie facility central to processing strategy
The Collie Micronising Facility is part of International Graphite’s plan to develop mid-stream graphite processing capacity in trusted jurisdictions.
Under the proposed arrangement, the facility would produce micronised graphite across varied size fractions and purity levels, with Wogen providing market access and feedstock support.