JOHANNESBURG (miningweekly.com) - Gemstone producer Richland Resources has entered into an exclusivity agreement with an international trading company to determine the feasibility of a potential business relationship in connection with flake graphite mining and processing at Richland's graphite project, located in its existing Block C licence area, in Tanzania.
Under the agreement, the trading company had a three-month exclusivity period to conduct its studies of the graphite project, followed by an additional three-month right-of-first-refusal period in respect of any business relationship with Richland.
"The initial three-month period will involve the company working with Richland's experienced technical and management personnel at Merelani to evaluate all aspects of the graphite asset, with a view to establishing a long-term source of flake graphite,” Richland CEO Bernard Olivier said.
He added that China's imposition of a 20% duty on all exports and the long-term growth potential in the electric car battery industry would drive global demand for graphite and supported Richland’s decision to pursue this opportunity.
The licence area hosted the producing Merelani Block C graphite mine, which produced 6 776 t during 1996 before running into financial trouble and closing in 1998. Sufficient reserves were initially identified for a 40-year operation at a mining rate of 15 000 t/y of high-grade flake graphite of 97% to 98% purity.