Graphite Mine Fills China Void

　　Valence Industries will list on the stock exchange on Monday after raising nearly $7 million of capital to reopen the Uley Graphite Mine, 23km from Port Lincoln in South Australia.

　　Chief executive Christopher Darby said yesterday that there had been a "double uplift" to the market with reduced supply and increased demand.

　　The mine was mothballed in 1993 after the large volume of graphite exports coming from China made it uneconomic to do business in Australia.

　　China produces about 75 per cent of the world's graphite, but last month ordered a reduction of up to 10 per cent of global supply coming from its graphite-producing regions on environmental grounds.

　　With Chinese government restrictions on graphite exports and high demand from hi-tech industries, Valence Industries will reopen its processing plant and mine to produce up to 60,000 tonnes a year.

　　"There has been quite an adjustment from the Chinese in terms of their exports, but at the same time there has been a significant increase in global demand through industrial applications but also new hi-tech applications," Mr Darby said.

　　The hi-tech boom has renewed demand for graphite for use in computer chips and electronics.