Sarytogan Graphite Unlocks Premium Ductile Cast Iron Market with Micro80C
Sarytogan Graphite Limited has successfully produced premium ductile cast iron using its Micro80C graphite, positioning itself to capture a high-margin segment amid growing domestic demand.
- Successful production of premium ductile cast iron with Micro80C graphite
- Three distinct graphite product lines targeting diverse industrial markets
- Growing domestic demand driven by new ductile cast-iron plant investment near Temirtau
- Micro80C offers premium pricing potential over traditional grey cast-iron recarburizers
- Ongoing trials and sample processing to support customer qualification and market entry
Sarytogan Advances Graphite Product Portfolio
Sarytogan Graphite Limited (ASX: SGA) has announced a significant milestone with the successful manufacture of premium ductile cast iron using its Micro80C graphite product. This development marks a strategic expansion into a high-volume, high-margin market segment, complementing the company’s existing product suite aimed at diverse industrial applications.
The company plans to produce three key graphite products: Micro80C for traditional industrial uses including recarburizers and lubricants; Ultra-High Purity Fines (UHPF) targeting advanced battery and industrial applications; and Spherical Purified Graphite (USPG and CSPG) designed for lithium-ion battery anodes. The Micro80C product, with a carbon grade between 80% and 85%, has now demonstrated suitability not only for grey cast iron but also for the more demanding ductile cast iron market.
Premium Ductile Cast Iron: A Lucrative Opportunity
Ductile cast iron differs from grey cast iron primarily in its microstructure, where graphite crystallizes as nodules rather than flakes, imparting greater flexibility and strength. This makes it ideal for engineered applications such as agricultural machinery, heavy trucks, and rail components. The recarburizers used in ductile cast iron command a significant price premium, ranging from US$1,000 to $3,000 per tonne, compared to those used in grey cast iron.
Sarytogan’s Micro80C graphite has shown a 92% assimilation rate in ductile cast iron alloying, achieving a composition with 2.8% carbon and 1.5% silicon while meeting stringent Kazakh and international standards for mechanical properties. This positions Micro80C as a competitive, high-quality recarburizer capable of commanding premium pricing in this segment.
Strategic Market Timing and Regional Demand
The timing of this breakthrough aligns well with recent developments in Kazakhstan’s steel industry. The Temirtau integrated steel mill, located just 200 kilometers north of the Sarytogan deposit, has announced a US$161 million investment to establish a 200,000 tonnes per annum ductile cast-iron pipe plant. This nearby demand center represents a high-priority target customer for Sarytogan’s Micro80C graphite, potentially accelerating market penetration and revenue growth.
Currently, Sarytogan is progressing with milling tests on a 20-tonne trial mining sample, with plans to air freight milled ore to Australia and the USA for further purification and product qualification. These steps are critical to securing vendor machine tests and customer approvals, paving the way for commercial-scale production.
Robust Resource Base and Development Outlook
The Sarytogan Graphite Deposit boasts a substantial Mineral Resource of 229 million tonnes at 28.9% total graphitic carbon (TGC), with an Ore Reserve of 8.6 million tonnes at 30% TGC. This resource underpins a staged development plan outlined in the company’s Pre-Feasibility Study, designed to balance capital expenditure with market demand and deliver attractive financial returns.
Beyond graphite, Sarytogan is also exploring copper porphyry opportunities in Central Asia, indicating a broader strategic vision to leverage regional mineral potential.
Bottom Line?
Sarytogan’s Micro80C graphite breakthrough could redefine its market positioning, but customer qualification and scaling remain critical next steps.
Questions in the middle?
- How will Sarytogan’s Micro80C pricing hold up against established recarburizer suppliers in Kazakhstan and globally?
- What is the timeline for commercial-scale production and delivery to the Temirtau ductile cast-iron plant?
- How might fluctuations in steel and cast-iron demand impact Sarytogan’s growth projections?
