Name and Location
Balama graphite project, Mozambique.

Client
Syrah Resources.

Project Description
A feasibility study has confirmed Balama as a project with low capital intensity and technical risk, but attractive returns.

As part of the study, a maiden proved and probable graphite ore reserve has been declared, comprising 81-million tonnes at 16.2% total graphitic carbon (TGC) for 13.2-million tonnes of contained graphite. This ore reserve provides sufficient inventory to support operations for more than 40 years after project ramp-up.

Balama will be a high-grade, openpit operation using conventional mining methods, with an extremely low stripping ratio. Operations will start with free-dig mining within the high-grade pits of Balama West using conventional truck and shovel mining. Operations will shift to the pits in Balama East thereafter.

The processing plant will have a feed rate of two-million tonnes a year using conventional processes, including crushing and screening, grinding, flotation, filtration and drying, as well as classification, screening and bagging.

Graphite concentrate will be transported to and shipped at the Port of Nacala, about 490 km away, using a sealed highway south-east of the project.

The feasibility study has not considered the vanadium potential of Balama, but a scoping study on the potential recovery and production of vanadium has been completed.

Syrah intends to conduct further vanadium technical studies during the construction and commissioning phase of the Balama project, with full feasibility studies to start after the successful commissioning of graphite production. High-purity vanadium samples produced from the Balama pilot plant testwork have been sent to several major vanadium redox flow battery producers.

Net Present Value/Internal Rate of Return
The project has a post-tax net present value, at a 10% discount rate, of $1.1-billion and an internal rate of return of 71%, with a payback period of less than two years from commercial production.

Value
The project is expected to have an initial capital expenditure of $138-million.

Duration
Ramp-up of the project is expected in the first quarter of 2017.

Latest Developments
Syrah Resources has executed another statement of sales intent (SSI), this time with raw materials supplier Hiller Carbon.

Under the terms of the SSI, Hiller Carbon will be granted exclusive rights to sell natural graphite recarburiser in the US, Canada and Mexico. Hiller Carbon is likely to buy between 25 000 t/y and 35 000 t/y of recarburiser from the Balama project.

The SSI will be valid for five years, with prices negotiated between Syrah and Hiller Carbon on a yearly basis.

The transaction with Hiller Carbon comes after Syrah recently signed an SSI with one of the world’s largest refractory producers, which intends to buy up to 15 000 t/y of natural graphite from Balama.

Key Contracts and Suppliers
CPC Engineering (detailed engineering and design).

On Budget and on Time?
Not stated.

Contact Details for Project Information
Syrah Resources, MD Tolga Kumova, tel +61 3 9670 7264 or email t.kumova@syrahresources.com.au.
CPC Engineering, tel +61 8 9365 0300, fax +61 8 9365 0333 or email CPCprojects@cpceng.com.au.