Hazer Group Ltd (ASX: HZR) today announced it’s artificial graphite production project in partnership with Mineral Resources (ASX: MIN) remains on schedule for commissioning in Q3 2018.
The project - the initial development of a pilot plant capable of producing 1 ton per annum (TPA) of artificial graphite able to be used in high value applications, will quickly scale up based on initial success.
In stage 2 of the project MIN will design and construct a commercial scale production facility capable of modular expansion but starting at 1,000 TPA. Once satisfied with the performance of the 1000 TPA commercial plant MRL aims to ramp up production with a nominal commercial production target of 10,000 TPA and beyond. HZR’s announcement today indicated success of the stage 1 pilot plant would allow MIN to potentially negotiate off-take agreements toward the end of 2018.
Today’s announcement is music to the ears of shareholders in HZR - who have seen the value of their shares halve in the previous six months as the project lay in the ‘orphan phase’. With HZR set to receive an undisclosed royalty from MIN based on sales of graphite shareholders will be looking forward to the project being completed to today’s announced timelines.
Site preparations are underway in the Kwinana, Western Australia commercial hub. All costs of the program are to be born by MIN who have a right of first refusal agreement on all graphite made using the Hazer process.
Hazer Group Ltd is an ASX listed technology development company commercialising their low-emission hydrogen and graphite production process. The process enables the effective conversion of natural gas and similar feedstocks into hydrogen and high quality graphite using iron ore as a process catalyst. In addition to the battery graphite market Hazer foresee their process being utilised in the very large industrial hydrogen market given it appears far more economical than existing hydrogen production methods.