Evion Group NL (ASX:EVG, OTC:EVIGF) has come to an agreement with the Madagascar Government on a path forward for the development of its Maniry Graphite mine in Southern Madagascar, identified as one of the government’s key regional mining projects to be fast tracked into development over the next year.
Evion hosted the Madagascan Mines Minister and key advisors at the Africa Down Under conference earlier this month and conducted several “very productive” meetings, concluding with a plan for the submission of formal development plans and consultation over the forthcoming weeks.
A series of actions were agreed to, and subsequent to the conference, the Evion Executive team presented a range of plans, budgets and important community development programs for the Madagascan government to consider as they jointly work toward granting the mine development permits.
The government has now adopted an Indicative Program for action on the issue, transfer and validation of mining permits with the program formally commencing on August 1, 2024.
Evion managing director David Round said: “We were delighted to host the Madagascan Government team at the Africa Down Under conference during the last few weeks.
"We held several very productive meetings and concluded our discussions with agreement on a pathway forward for the development of the Maniry Graphite mine in Southern Madagascar. Further meetings have been also held over the last few days as we continue to progress all necessary approvals.
“The Madagascan Government’s new Mining Code (2023) has seen a positive step to unlocking the country’s vast critical mineral resources, including large graphite projects.
"The government’s recent initiatives and announcements, combined with significant World Bank support and funding, is an enormous positive step for mining in Madagascar and our plans continue to advance to be a material supplier of graphite concentrate and downstream material to the world over decades to come.
“We are delighted with these developments and our team is actively working in-country to conclude all tasks necessary for Evion to be issued with development and mining permits as soon as possible.”
Local support for development
Evion is confident that its Environmental and Social Impact Plan, including a Relocation Action Plan, will be concluded in the short term. These plans include a very significant period of consultation with the local community to ensure they are fully engaged with the project’s development.
The company says the local community has been highly supportive of the development, which will provide the Maniry region with employment, education, health and medical support and a range of other social and economic initiatives.
The Maniry project has the potential to employ more than 350 local people in the Maniry region and Evion is committed to providing community support with the building of infrastructure, schools and local health and community centres.
World Bank support for Madagascar’s mining industry
The World Bank has been actively working with the Madagascan Government on a range of funding and administrative matters designed to fast-track development of the country’s mining industry.
Much of the immediate budget assistance to be provided by the World Bank to Madagascar has been conditional on the conclusion of a plan to promote and develop the mining industry.
Evion says that progress and commitments have now been made by all parties, allowing Madagascar to develop its critical minerals and graphite mining sectors.
EU grant application submitted
Evion recently submitted a grant application to the European Union for funding and infrastructure support as part of the EU’s Critical Raw Materials Act.
The EU’s funding and infrastructure support program is designed to ensure a secure and sustainable supply of critical raw materials for the EU, with the focus on critical minerals required for strategic technologies including EVs, digital, defence and space applications.
The EU recognises 34 raw materials of critical economic importance – 17 of these are defined as ‘strategic’ with graphite identified as strategically important. Madagascar has a history over many decades of successfully exporting graphite concentrate to the EU. Apart from China, an estimated 25% of Europe’s graphite supplies and downstream products are from Madagascar.
Madagascan Mines Minister, HE Olivier Herindrainy Rakotomalala, presenting at Africa Down Under Conference.
Evion hosts trading partners at Panthera Graphite JV in India
Evion managing director David Round last week accompanied the company’s largest offtake partner, Dominik George Luh representing Technografit and Grafitbergbau in Europe, on a site visit to its completed expandable graphite operations in India.
The company reported that the onsite meetings were “highly productive” with discussions held on the expansion of operations to meet the projected medium and long-term demand for expandable graphite in Europe, USA and parts of Asia.
The parties also held discussions around pricing and the short-term outlook for expandable graphite. The Evion and JV management team are confident of achieving premium and well above market prices for their material – given the high ESG standards and production methods developed on site.
The Panthera Graphite operations have developed a production and waste treatment process that will recycle over 95% of water used in production. This, combined with high processing standards, will ensure the JV operation has a minimal carbon footprint.
The completed world class Panthera Graphite expandable graphite operations in Pune, India.
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