Evion has sent off a comprehensive study of its flagship Maniry graphite project. Pic via Getty Images.
Mining
The Maniry graphite project in Madagascar is another step closer to development after key environmental and social impact studies were submitted to the national regulator.
The independent assessment for Evion Group’s (ASX:EVG) project was carried out by Resolve Consulting, which undertook a comprehensive review of the potential environmental and social impacts of the proposed development and operational activities associated with Maniry.
Submitted to the Office National pour l’Environnement (ONE) in Madagascar, the review also included a capital cost breakdown and an understanding of the development plans.
Once approved by ONE, Evion Group (ASX:EVG) will receive a global environmental permit – an essential licence which will pave the way to begin construction.
Evion MD Tom Revy says the company will continue to work with Resolve and ONE over the coming months to ensure all the supporting information about Maniry is provided in a timely and transparent manner.
“At the same time, Evion will continue to hold formal community discussions with villagers around Maniry, detailing the company’s development plans and activities and encouraging feedback from local stakeholders.”
Graphite demand is projected to rise, with Macquarie forecasting a deficit by 2025 due to demand from the EV market, which is expected to require 60% of graphite production by the end of 2030.
The junior explorer has recently been meeting with several funding and development parties in the US to advance the development of its flagship Maniry project, and the formal assessment will play another crucial role in attracting investment opportunities.
EVG said those discussions also include advancing agreements in relation to its proposed battery anode operations in Germany.
A scoping study was recently completed relating to the plant by Wave International in Australia with the ongoing assistance of Dorfner Anzaplan in Germany.
The study will be expanded to incorporate clean energy tech and production methods available to the company as part of its collaborative agreement with US-based battery anode material developer Urbix.
“Our strategy remains focused on becoming a leading vertically integrated graphite and battery anode material producer,” Revy said.
Results from a 2022 definitive feasibility study (DFS) highlighted excellent financial metrics at Maniry, such as a net-present value (NPV) post tax of A$325m, life of mine EBITDA of A$60m per annum and payback period of 3.8 years.
EVG believes larger CAPEX figures in stage 1 (+40,000tpa concentrate) totalling A$119.03m allows for a quicker and less disruptive construction and commissioning period for stage 2 expansion.
This article was developed in collaboration with Evion Group, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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