PERTH (miningweekly.com) – Graphite developer Syrah Resources has awarded the graphite distribution and logistics services supply contract at its Balama project, in Mozambique, to JSE-listed Grindrod Mauritius.
The contract includes the provision of long haul trucking services for graphite concentrate from the Balama site to the Port of Nacala, and a purpose-built cross dock product storage and shipment containerisation facility some 4.7 km from the port.
The facility will be built and operated by Grindrod and will be for the exclusive use of Syrah over the term of the contract.
The contract also includes a provision for short haul trucking services from the cross dock facility to the port of Nacala, and the provision of customs clearing and forwarding services associated with the export of the graphite concentrate produced at Balama.
Syrah MD and CEO Shaun Verner said on Monday that the operating costs for logistics and distribution services were expected to be lower than the feasibility study estimates of $125.70/t.
“The finalisation of this contract represents a very significant milestone for the company with the imminent commissioning and first production from our Balama graphite project,” he said.
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.