South Star Mining is gearing up to start commercial production at the Santa Cruz graphite mine in Brazil. The company plans to commission the Phase 1 plant with a capacity of 1,000t per month in the coming weeks after completing construction this month.
The Santa Cruz Mine has recently received approval for a mining license from the Brazilian Ministry of Mines and Energy for five areas covering 4,431 hectares. This approval is essential for the planned mining operations across Phases 1, 2, and 3.
South Star Mining anticipates that the Santa Cruz mine will be the first new graphite production facility in the Americas since 1996. Phase 1 commercial production is expected to commence in the third quarter of this year.
Future expansions are on the horizon for the project, with Phase 2 aiming for an annual production capacity of 25,000 tonnes per annum in 2026 and Phase 3 targeting 50,000tpa in 2028. Phase 2 has already secured partial funding.
South Star CEO Richard Pearce highlighted the significance of the definitive mining licenses, stating that they derisk Phases 2 and 3 from a permitting and licensing standpoint. The company is well-positioned to meet market demands and scaling production as needed.
With an agreement in place with Sprott to secure funding for Phase 2, South Star Mining is pushing to complete an updated feasibility study incorporating Phase 3 production at the Santa Cruz Mine.
