Volt Resources Ltd (ASX:VRC) along with its Ukraine subsidiary Zavalievsky Graphite (ZG) are hoping to resume operations at the ZG mine and processing plant later in the year.
Operations are currently suspended owing to the winter in Ukraine and energy supply disruptions brought about by the ongoing Russian invasion of the country.
With winter conditions lasting until around March and energy supply disruptions ongoing, the management of Volt and ZG continue to monitor the situation, address the issues and define the best way forward.
August 2022 production
ZG resumed operations on August 1, 2022, following lengthy periods of disruption to the Russian invasion of Ukraine in later February 2022.
Graphite production of 846 was achieved during August from only 14 days of processing operations with an average of 60.5 tonnes of graphite product per day prior to working capital and supply chain issues suspending production.
This production has been sold with prices achieved during the December 2022 quarter ranging between €520 per tonne FCA for low-grade fine material to €$1,900 per tonne DAP for purified graphite grading 99.5% TGC.
ZG retained about 30 tonnes of graphite produced in August for battery anode material test work and other uses.
About Zavalievsky
Volt has a 70% interest in the Zavalievsky Graphite business, which is in close proximity to key markets with significant developments in LIB facilities planned to service the European-based car makers and renewable energy sector.
Upon the August restart, European suppliers required payment in advance of delivery of operating consumables and maintenance spares to the operations which, combined with extended product payment terms from customers, created a large working capital deficiency.
Volt proceeded to raise capital to, amongst other uses, provide funds to ZG to address the working capital deficiency.
Energy supply disruptions
In November 2022, energy supply disruptions began due to Russian missile attacks on power generation facilities affecting the entire Ukraine energy grid.
Combined with the continuation of supply disruptions, this has resulted in ZG management being unable to recommence production prior to the Ukraine winter.
ZG usually ceases operations during winter, as temperatures below freezing cause issues with pumping of process water supply and tailings material.