PERTH (miningweekly.com) – Graphite developer Volt Resources has entered into a cooperation agreement with Chinese graphite group Aoyu Graphite Group, paving the way for the company to produce industrial size samples from its Namangale project, in Tanzania.

Aoyu will process up to 100 t of Namangale ore in the third quarter of this year, under a product trial. It is estimated that some 40 t of graphite concentrate will be produced under the trial, which will be processed into spherical and expandable graphite industrial size samples for prospective customers.

As part of the same agreement, Volt also now has a framework in place to discuss using Aoyu’s excess capacity to produce up to 20 000 t/y of spheronised product for sales to the battery anode market, and securing an offtake agreement with Aoyu for between 10 000 t/y and 20 000 t/y of graphite concentrate.

Volt CEO Trevor Matthews said that aligning with Aoyu was an important strategic development for Volt, as it provided a platform to start delivering spherical and expandable samples to prospective clients.

“More importantly, it will enable Volt to potentially secure a processing agreement for up to 20 000 t/y of spheronised graphite to meet prospective clients' in the battery anode sector requirements.”

The ability to use Aoyu’s downstream processing capacity and deliver product under the offtake agreement will be dependent on Volt completing the Stage 1 feasibility study for its Namangale project, as well as project approvals, construction contracts and securing funding to build a 10 000 t/y to 20 000 t/y graphite concentrate processing facility.

Volt said that it was currently in discussions with a number of investors and financial institutions in relation to development funding.

The Stage 2 development will be completed in 2020 to meet expected increases in demand, and the expansion will be based on market demand.