Diversified mining group Mineral Resources (MinRes) and tech company Hazer Group are planning to form a joint venture to develop a commercial-scale synthetic graphite plant.
The joint venture plans come after MinRes increased its stake in Hazer to 14 per cent through a $5 million share placement.
Hazer will use the proceeds of the placement to continue its ongoing commercialisation and development of the Hazer Process, which it says enables the effective conversion of natural gas into hydrogen and high-quality graphite.
The funds will also enable Hazer to expand the capability of a pre pilot plant it is developing and start planning for further scaling up of the Hazer Process.
In addition to the placement, the two parties said they were formally discussing the establishment of a JV to develop the graphite plant, which would supplement MinRes’ existing battery materials business.
Hazer managing director Geoff Pocock said the company was looking forward to working with MinRes to bring the first commercial-scale plant to fruition.
“Mineral Resources have been significant supporters of the company since our IPO, and this placement further aligns our interests,” Pocock said.
“We are pleased that Mineral Resources see Hazer as a key part of their ongoing energy storage materials business, and we see them as an invaluable partner for the ongoing development and commercialisation of the Hazer technology.”
The placement involved the issue of 8.33 million shares at an issue price of $0.60 per share.