The sales and growth plan of Volt Resources Ltd (ASX:VRC, OTC:VLTRF) for Zavalievsky Graphite (ZG) in Ukraine to be a high-value purified graphite business has been boosted by a firm order for 40 tonnes of high purity (99.5%) micronised graphite at a price exceeding €2,700 per tonne.
This comes as Volt considers the expansion of ZG’s high-purity graphite production and sales in Europe and other markets as a key opportunity to generate positive cashflow in the current graphite market.
Pilot production plan
The strategy is to grow ZG’s high-value purified graphite business by expanding the existing high-purity graphite production line and start pilot-scale production — via a patent-pending environmentally friendly process — of a 99.95% graphite product in 2025.
This is suitable for the production of active anode material for lithium-ion and other battery technologies.
High-value product
Among various graphite grades offered for sale in the graphite market, ZG has the unique ability to produce high-value and differentiated 99.5% purity graphite where the typical price is €2,000 per tonne for -100 mesh.
This compares to the current price of about US$661 per tonne, CIF Europe, for graphite flake 94% C, -100 mesh.
Products such as purified (99.5% or higher purity) graphite, command higher prices and can generate higher revenues and value for ZG and Volt.
ZG well placed
“Volt believes in the future of the Zavalievsky Graphite business with its close proximity to European markets, unique processing capability and many years of operating experience," Volt's executive chairman Asimwe Kabunga said.
"The mine and processing facilities are in a relatively secure location which has not experienced any military activity and has logistics routes that allow movement of products and materials in and out of Ukraine.
"Recently the company recommenced discussions with a major European financial institution regarding funding for cost, productivity and ESG-related improvement programs for Zavalievsky. We will make further announcements as the discussions progress.”
Other ZG products
As well as graphite, ZG’s product portfolio consists of gravel (crushed stone) with plans to produce and profitably sell gravel to the domestic market during this calendar year.
ZG also has a goal to develop its substantial garnet resources as a future product line.