- Hazer Group (HZR) and Mineral Resources (MIN) have moved to terminate their collaboration agreement from December 2017
- Under the agreement, the two companies were investigating the potential development of a synthetic graphite project
- Despite completing stage one of the project, Mineral Resources has stated that it will not be proceeding to stage two
- Hazer Group closed 20.63 per cent in the red for 63.5 cents per share
- Mineral Resources closed 4.12 per cent higher to trade for $31.10 per share
Hazer Group (HZR) and Mineral Resources (MIN) have moved to terminate their collaboration agreement from December 2017.
The two first entered the agreement in order to jointly investigate the development of a synthetic graphite project. A three-stage approach to developing this project was proposed, with the first stage being completed in August 2019.
The successful first stage of the project was the development of a pilot plant. The rotary paddle tube reactor, which Mineral Resources owns, exceeded performance and quality targets by producing graphite at over 95 per cent total graphitic carbon.
However, Mineral Resources has since reconsidered its participation in the binding cooperation agreement with Hazer Group. This is reportedly due to changes within its business, and a review of the synthetic graphite industry.
Mineral Resources no longer considers graphite to be a strategic focus, and has chosen to focus on opportunities within its iron ore, lithium, and mining services portfolios. As such, the company has stated that it will not proceed to stage two of the project, and has exchanged a deed of termination for the collaboration agreement with Hazer Group.
Hazer Group’s Chair, Tim Goldsmith, thanked Mineral Resource for its support and collaborative assistance over the last three years.
“Mineral Resources have played an important part in the development of Hazer, as investor, collaboration partner, and Board members; we would like to acknowledge that,” he said.
“We understand the reasons behind Mineral Resources’ decision and wish them well with their rapidly growing and very successful minerals business,” he added.
Despite Mineral Resources’ departure from the collaboration, Hazer Group intends to maintain focus on development of its Commercial Demonstration Project. The project consists of a 100-tonnes per annum hydrogen production facility, which will be built at the Water Corporation Woodman Point Wastewater Treatment Facility.
Hazer Group closed 20.63 per cent in the red, to trade for 63.5 cents per share.
Mineral Resources closed 4.12 per cent higher to trade for $31.10 per share