BlackEarth's Indian plant set in stone
PERTH (miningweekly.com) – ASX-listed BlackEarth has signed a joint venture (JV) agreement with India’s Metachem Manufacturing Company to develop an expandable graphite plant in India.
Under the terms of the agreement, BlackEarth will source high quality graphite concentrate for treatment in the new expandable graphite plant, and following the completion of its own plant, would provide large and jumbo flake graphite to the JV.
The JV partners will share in the equity and profits of the proposed plant on a 50:50 basis, with the total capital cost estimate of the project currently estimated at between $3-million and $3.5-million. The plant is expected to have an initial production of between 2 000 t/y and 2 500 t/y, and will grow to some 4 000 t/y, with plans to materially increase production at a later date.
BlackEarth will also manage the sales, marketing and the growth of sales work.
“The signing of this JV is an exciting development in the growth of our company. To form a JV with a world leader of expandable graphite production is a wonderful outcome and this event follows many months of discussions between the executive teams of our two companies,” said BlackEarth MD Tom Revy.
“Now that we have signed this JV, we will shortly move to our preferred site in India and also conclude the recruitment of senior executives in India to manage the planning, construction and development phase.”
The JV would position BlackEarth as the first producer of commercial levels of expandable graphite on the ASX. Plant development plans have commenced, with implementation expected within three months, and production and sales projected by mid-2022.
First year sales for the JV have been estimated at some A$9-million, ramping up to around A$17-million.
“Having an offtake partner prepared to buy all initial production has also given us confidence to move forward with plant expansion plans so that we can increase production and sales over the medium term, while minimising operational risk,” said Revy.
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