Evion Group NL (ASX:EVG, OTC:EVIGF) is a step closer to becoming the first ASX-listed expandable graphite company, with production expected to commence next month at its newly constructed expandable graphite facility in India.
The company plans to become a leading supplier of expandable graphite material to the existing and the growing expandable graphite market. Evion highlights how production can go toward filling a projected global shortage of expandable graphite following China's ban on the export of graphite materials.
Commissioning activities continue
The company says that commissioning activities are continuing in preparation for March production at the Panthera Graphite Technologies operation — a 50/50 JV between Evion and Metachem Manufacturing Company Pvt Ltd.
A highly experienced team of graphite processing specialists from Metachem along with external engineering advisers have continued to work on the commissioning phase with substantial infrastructure having concluded over the last month.
Service areas are now being completed, with the rollout of the remaining staged commissioning and start-up schedule due to be completed next month, to coincide with the completion of the revised effluent treatment plant.
Substantial infrastructure on site this month.
Building toward production
As previously outlined, the JV partners decided to install a more advanced effluent treatment plant (ETP), which has proven to be more capital cost-efficient. This new ETP should also result in a lower operating cost, less final waste and a reduction in the project’s overall carbon footprint.
A range of potential feedstock material has now been sourced and tested as part of the full-scale qualification process. The material was tested at Metachem's processing facility in Pune and the expandable graphite products were deemed suitable for a variety of potential uses.
Evion will continue to oversee the final development stages of the project and to ensure the delivery approach incorporates high HSE standards. Executives from Evion will be on site throughout February and March reviewing initial production and providing regular updates on progress.
A focus on sales
Recently, the JV directors met in Dubai with parties representing the buyers of the JV's expandable graphite.
These meetings were said to be very constructive and discussions largely focused on production planning to maximise revenue from producing high-quality materials; growing production in the short term to meet global demands; and introducing new markets for the JV's material including Australia and other parts of the world.
Material from the JV's plant has previously been tested and qualified by the main offtake partner, but Evion — in conjunction with other potential buyers — is also arranging for samples to be tested and qualified by a range of other new global buyers. This will assist in the business’ global reach over the next 1- 3 years.
Discussions also focused on establishing fixed price terms for the first years of production at price levels that are well within the JV's budget guidelines. The JV is looking to conclude these price and trade terms in the short term.