AUSTRALIAN MINER SYRAH SIGNS DEAL TO SELL GRAPHITE FROM MOZAMBICAN OPS TO CHINESE FIRM

MAPUTO, Australian mining company Syrah Resources says it has signed a binding agreement with Chinese company Zhanjiang Juxin New Energy Materials Co. Ltd under which the Chinese company will buy 20,000 tonnes of graphite from the Syrah mine in Balama district in the northern Mozambican province of Cabo Delgado in 2018.

According to a Syrah media statement here Thursday, all other terms of this agreement are confidential. Zhanjiang Juxin was established in 2006 and specialises in the production of spherical graphite and anode material for lithium-ion batteries and is one of the leading high quality spherical graphite and anode material producers in China.

Syrah Managing Director Shaun Verner said: This contract represents another significant import of Balama graphite into the leading geographic market for natural graphite. Our agreement with Zhanjiang Juxin further illustrates the demand for Syrah’s natural graphite as a base load material for battery anode applications.”

He added that Balama is the only major graphite project currently commissioning and moving into operations, with target production of 160,000 to 180,000 tonnes in 2018. “This places Syrah in a strong position to respond to the demand from growth in electric vehicle and energy storage markets. We look forward to a long term association with Zhanjiang Juxin, he said.

The Balama mine is reported to hold the largest graphite reserves ever discovered. The Syrah operation is an open cast mine, and the company estimates the lifespan of the resource at 42 years, feeding two million tonnes of ore a year into the graphite processing plant. Syrah puts the initial capital expenditure on the Balama mine at 144 million US dollars.

Source: NAM NEWS NETWORK