Evion Group (ASX:EVG) says the Madagascan Government’s new mining code aligns with its plans to be a material supplier of graphite concentrate via the Maniry Graphite Project in Madagascar.
The new mining code includes granting development and production licences for compliant graphite projects.
Recently, the Mines Ministry of Madagascar issued an order to Bureau du Cadastre Minier (BCMM) in Madagascar authorising to begin the transfer of permits to allow for construction and development of mine operations.
In conjunction, the government has adopted an indicative program for action on the issue, transfer, and validation of mining permits with the program formally starting on 1 August 2024.
Managing Director David Round says the government’s new mining code has seen a positive step to unlock the country’s vast critical mineral resources, including graphite projects.
“The government’s recent initiatives and announcements, combined with significant World Bank support and funding, is an enormous positive step for mining in Madagascar and our plans to be a material supplier of graphite concentrate and downstream material to the world over decades to come,”Round says.
“We are delighted with these developments and our team is actively working in country to conclude all tasks necessary for Evion to be issued with development and mining permits as soon as possible.”
Evion Group, which has a market capitalisation of $8.78 million, says its in-country development team, led by Lydia Boarlaza, is currently in process of concluding our Environmental and Social Impact plan, which will include a Relocation Action Plan.
The company is confident having these plans concluded in the short term. As part of concluding these plans, Evion will engage in a “significant” period of consultation with local communities to ensure they are engaged with its project’s development.
Further, Evion has recently been invited to apply to the European Union (EU) for funding and infrastructure support, as part of Europe’s Strategic Raw Materials Act.
The funding and infrastructure support program offered by the EU is designed to ensure a secure and sustainable supply of critical raw material for the EU, focusing on critical minerals required for strategic technologies, including EVs, digital, defence, and space applications.
Evion Group is focused on finalising permits and licences to kickstart development activities on its flagship Maniry Graphite Project in Madagascar. The project offers “high-quality” natural graphite, with a mine life of 21 years and a reserve of 18 years.
