New mine proposed for SA's Eyre Peninsula

Plans for a new graphite mine on South Australia's Eyre Peninsula have been lodged with the state government.

Developer Archer Exploration says the mining and processing facility, based around its Campoona Shaft deposit near Cleve, could be underway as early as next year.

If approved the project will generate about 40 permanent mining and processing jobs.

The state government will now review the draft proposal before Archer lodges a formal application that will trigger a public consultation and assessment process.

Archer managing director Gerard Anderson says a stand-out feature of the plan is for development of a commercial processing facility.

"This provides a cost and quality-control advantage at a time when the ultra-high graphite grades from Campoona will be able to attract a price premium," he said in a statement on Thursday.

Archer expects to extract 140,000 tonnes of graphite each year from the Campoona Shaft deposit to produce about 10,000 tonnes of high-grade graphite concentrate.

The mine is expected to have a 14-year life.