PERTH (miningweekly.com) – The Mozambique government has approved a mining agreement with ASX-listed graphite developer Syrah Resources over its Balama project.
The agreement, reached with the Ministry of Mineral Resources and Energy, would consolidate all prior project documents and approvals, and provided Syrah with clarity around the governing laws, contractualising the mining right as well as other obligations for the Balama project.
“The approval of the mining agreement by the government of Mozambique represents a significant milestone for the company and reaffirms Mozambique’s commitment to the long-term sustainability, stability and success of the Balama project,” said Syrah MD and CEO Shaun Verner.
The mining agreement will now be gazetted and signed by the relevant parties in the coming weeks. It will then be presented to the Administrative Court for sanctioning, after which it will become binding and enforceable.
The Balama operation is expected to produce an average of 365 000 t/y of graphite concentrate during its first ten years of production, to deliver free cash flow of $160-million a year.
The project is expected to be commissioned in the second quarter of this year.