Evion Group NL (ASX:EVG, OTC:EVIGF) is making good progress in the development of the Panthera expandable graphite joint venture (JV) project in Kurkumbh, India, with plant construction expected to be completed in the coming weeks to be followed shortly by first production.
ASX-listed Evion is developing Panthera Graphite Technologies (PGT) in collaboration with JV partner Metachem Manufacturing Co Pvt Ltd.
The partners plan to commence production of 2,500 tonnes of expandable graphite per annum in the first year, growing to 4,500 tonnes by the third.
This venture is forecast to bring in gross revenue of US$7 million in the first year of operations, growing to US$18 million per annum following expansion of production.
Plant commissioning “very soon”
''The PGT management and construction team have done a fantastic job in constructing our plant and related infrastructure so quickly,” Evion managing director Tom Revy said.
“Extensive infrastructure is now in place and we expect commissioning to start very soon and the Evion team will be on site shortly to assist in this process.
“This will pave the way for the start of production and cashflow in the coming quarter, enabling us to capitalise on the strong global demand for expandable graphite."
Progressing nicely
Construction of the processing facility is well underway, with the installation of production equipment in progress.
The main facility structure has been expanded to accommodate the doubling of production in the short term and will be funded from operational cash flow.
Additionally, the joint venture partners have decided to install a more advanced effluent treatment plant (ETP), which is substantially more cost-effective to reduce operating expenditure, waste volume and carbon footprint.
Testing of the new ETP system has caused a slight delay in the commissioning timeline but the partners consider this as justified given the cost savings.
Work on key support infrastructure such as offices, water and fuel storage is ongoing, and no lost-time injuries have been recorded to date.
PGT has also negotiated a secondment arrangement with Metachem to provide experienced personnel to assist with the commissioning of the processing facility.
Inspections were carried out on centrifuges such as this.
Product testing
To ensure its expandable graphite meets the specifications of its European customers, PGT has placed large orders of graphite concentrate for use in testing.
It is also in advanced discussions with potential buyers to finalise pricing and other commercial terms for the sale of the final product.
Initial negotiations have been encouraging, and PGT anticipates achieving prices that meet or exceed those projected in its scoping study.