The company said that foundation construction is underway, and it has ordered essential equipment for the construction.
Elcora president Troy Grant said: "If successful, Elcora’s future capability to refine graphite to 98% or greater purity and with appropriate flake size would facilitate the development of working relationships with end-users of refined graphite and, ideally, may enable Elcora to seek and hopefully secure, long term offtake partners."
The refining mill, which has a specified throughput capacity of around 2,500 tons a year, is expected to be completed in the second calendar quarter of 2015 when training of personnel will commence.
It will process existing stockpile of around 250 tons of graphite mineralization and other material extracted from the Ragedera mine.
The project marks the first phase of a modularly expandable production facility for the purification of graphite powder.