Hazer Group (ASX:HZR) has entered a non-binding memorandum of understanding and graphite offtake terms with privately held Green Steel of WA Collie (GSWA).
The company will supply up to 85,000 tonnes of graphite to GSWA across a 10-year term using a price linked to the landed price of anthracite by less than 5%, subject to further graphite testing.
Offtake supply will begin in 2030 with the letter of intent expected to mature from non-binding to binding.
The agreement represents Hazer’s first commercial graphite offtake agreement with a steel making customer.
Hazer CEO Glenn Corrie says this agreement is a milestone for the company, marking a “significant step forward” for the company’s graphite monetisation strategy.
“At current anthracite prices, this deal has the potential to be a long-term, high-value contract for Hazer,” Corrie says.
“We are very pleased to be collaborating with Green Steel WA to supply locally produced graphite for their groundbreaking clean steel project.
“This deal is another endorsement of Hazer’s competitive advantage and direct applicability to low-emissions steel manufacturing and builds on recent collaborations with POSCO and M Resources relating to the decarbonisation of this important sector.”
GSWA Executive Director Azlan Ho says the company is excited to collaborate with Hazer.
“The synergies between Hazer’s technology and its products with our vision for clean steel making in Western Australia as well as promoting local manufacturing and processing to support Made in WA and a Future Made in Australia are self-evident,” Ho says.
“Even without Hazer’s graphite, our steel making process will be the cleanest in Australia by far.
“With Hazer’s graphite there is the possibility for our emissions intensity to be lowered further.”
Hazer Group is an Australian technology company focused on driving global decarbonisation efforts with the commercialisation of its climate-tech.
Write to Maddison Elliott at Mining.com.au
Images: Hazer Group
