Cal Graphite approaches full protection, major clients evaluate graphite's quality.

Cal Graphite approaches full production, major clients evaluate graphite's quality

An official with the Cal Graphite Corporation of Sudbury says the company expects to have its Graphite Lake processing plant in full production sometime this month.

In a September interview Debra Dupis, secretary/treasurer for the company, said that Cal Graphite's major clients were in the final stages of evaluating the graphite produced from the site near Kearney and were expected to complete their studies by the end of the month.

"They all have different requirements for the graphite," she said. "We just want to ensure what's coming out (of the processing plant) is what they want."

Noting that the company's major clients have been involved in the operation since day one, Dupuis said the evaluations were "just a formality."

Graphite, because of its ability to withstand high temperatures and its lubricity, is used in such items as batteries, brake linings and pencils, as well as for refractories such as bricks and crucibles. The United States has also deemed it a strategic material because of its many favorable characteristics.

Dupuis declined to name the companies currently evaluating the product, citing non-disclosure agreements, but added the firms are all located either in the United States or in Europe.

The company official said the processing plant was commissioned last spring and has been slowly brought up to the 3,000-ton-per day level. The mill was constructed to handle up to 5,000 tons per day and Dupuis said she was confident the capacity would be reached in the coming months.

"The markets are there," Dupuis commented. "The U.S. market alone is substantial."

According to Dupuis, the Northern Ontario facility is the only site on the continent which offers high-grade graphite.

"The cornerstone of this company is quality," she said. "If they (the client companies) wanted lousy quality they could have got the graphite from China."

Aside from China, only the Soviet Union and Madagascar produce the material. China has reduced its export levels and the Soviet Union has ceased exporting graphite altogether. Despite the dramatic political changes which have occurred in the Soviet Union during recent months, Dupuis was doubtful the country would become a factor in the market.

"I don't think they can overcome their problems," she said. "They have enough problems putting bread on people's tables, so I'm not too worried about graphite."

Dupuis noted that the Soviet industry will have to modernize its equipment and any increase in production would most likely be needed domestically since the country currently imports the material.

Dupuis added that the relatively stable political situation in Canada is one reason there is an abundance of clients for Cal Graphite.

"There are no other modern facilities such as ours in North America and clients know they get quality graphite and count on that," she said. "Clients also know there won't be any problem getting the product from us."

To add to the company's stability is the fact that the mill and the mine site are owned outright by the company.

NO DEBT

"We're very pleased not to be saddled with any debt," she said. "Some mines have so much debt that they might not be able to weather a downturn in the economy."