PERTH (miningweekly.com) – Graphite developer Triton Minerals has signed a second binding offtake agreement over its Ancuabe project, in Mozambique.
The offtake agreement with China’s Qingdao Chengyang Graphite covers up to 16 000 t/y of graphite concentrate, for at least five years, with a seller option for a further five years.
The minimum quantity under the offtake agreement is for 10 000 t/y across a range of graphite product specifications.
Triton told shareholders that the selling price under the offtake agreement would be determined by the prevailing market prices in China, subject to a range.
ASX-listed Triton has previously signed an offtake agreement with Qingdao Tianshengda Graphite Company for up to 16 000 t/y of graphite concentrate, also for a period of at least five years.
The company noted that with up to 32 000 t/y of Ancuabe product now forward sold in binding offtake agreements, nearly 50% of the yearly production had been accounted for.
“Securing binding agreements for up to 50% of forecast annual production with experienced graphite producers in Chengyang and Tianshengda demonstrates the success of Triton’s product marketing strategy and the demand for large flake, high purity graphite in the Chinese market,” said Triton MD Peter Canterbury.
“In addition, this external support for the Ancuabe graphite project provides strong momentum for our engineering, procurement and construction financing and development objectives, which are on track to enable an investment decision in 2018 and first production from Ancuabe in late 2019.”
A definitive feasibility study on the Ancuabe project estimated that it would require preproduction capital of $99.4-million to build a mine that is capable of producing about 60 000 t/y of graphite concentrate.
The project is expected to produce its first graphite in the second half of 2019.