Time To Invest In Graphite?

on Jul 18, 2012

The world’s demand for graphite is growing with every single day with its properties having many applications in electro engineering, electrochemistry, computing technology, construction and many more. And then, there is the graphene – the latest miracle material, synthesized from graphite, which many believe to be the material of the future. It’s the strongest and the most conductive material known to man and it’s also incredibly thin (it can be isolated into one atom thick sheets).

With so many applications, it’s safe to assume that the demand for graphite will continue to grow, and with that the interest in graphite related investments will grow as well. In a recently released article http://thegraphiteinvestor.com says that there is a bullish graphite trend in the making that investors could capitalize on. Shrinking supply and growing demand usually leads to healthy profits – that’s basic economics. The article claims that these conditions are in place right now for graphite and that the graphite mining industry creates opportunities for highly profitable investments.

!m[](/uploads/story/157/thumbs/pic_1_inline.png)China controls about 75% of the natural graphite mines in the world, but there are quite a few companies outside China which have large graphite mining operations. And there are signs that despite controlling three quarters of the world’s resources, China is already experiencing a strain on its graphite supply. The country began importing flake graphite from North Korea. Also, most of the graphite China’s producing is low-grade (with no visible crystallinity).

Under these circumstances, the market suddenly becomes smaller and it could be expected that with the current growth in demand, foreign graphite mining companies will have much stronger positions. But to be able to capitalize on the upcoming bullish trend, thegraphiteinvestor.com says, investors need to choose in which companies to invest their money carefully with several factors highlighted as of particular importance to be taken into an account.

The most important thing is to identify established explorers and miners. Next on the list is the country, which must be mining friendly. Then comes the criteria that mining projects be close to infrastructure and have advanced deposit mines. Lastly, the management staff of the company has to be competent and experienced.
Following this criteria Canada is suggested as a suitable destination for investors to look at carefully. The country has just the right conditions for successful graphite investments with several extremely rich graphite deposits, mainly in the Ontario and Quebec provinces, and more than a few established and successful companies operating in the space.

Not all analysts agree that there will be a boom of graphite investments though. Some believe that such forecasts are far-fetched and a bullish trend, should it happen would be nothing more than a temporary surge. Graphite’s use in grapheme production could be key if a cost efficient method for graphene production on an industrial scale is developed. And looking at similar examples from the past (aluminum production being the most notable) the development of such a method is almost inevitable.


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