Name of the Project
Montepuez graphite project.

Location
Mozambique.

Client
Battery Minerals.

Project Description
A value engineering study (VES) has determined that a restructure of the Montepuez graphite project will result in the development generating outstanding financial returns. 

The aim of the VES was to:
• significantly improve financial returns highlighted in the February 2017 definitive feasibility study (DFS) by optimising the processing plant through modularisation;
• refine the mine plan to produce a higher head-grade;
• adopt an owner operator mining and accommodation model to remove the use of contractors; and
• reduce the size of the initial tailings dam and water supply facility.

Concentrate recoveries were also increased through a series of successful metallurgical and processing testwork. 

Under the VES, the Montepuez process plant will initially process run-of-mine ore at an average of 500 000 t/y at 12% total graphitic carbon (TGC) to produce 45 000 t/y to 50 000 t/y of dry graphite concentrate, with an average grade of 96.7% TGC. 

Compared with the February DFS, the VES has also reduced expected life-of-mine from 30 years to ten years, with concentrate production decreasing from 100 000 t/y to between 45 000 t/y and 50 000 t/y.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at a 10% discount rate, of $146-million and an internal rate of return of 36.2%. Payback has been reduced from 4.75 years in the DFS to two years in the VES.

Value
Total capital expenditure in the VES is estimated at $42.33-million, compared with $126-million in the February 2017 DFS.

Duration
Construction is expected to start in the second quarter of 2018, with steady-state production expected in the final quarter of 2019.

Latest Developments
Battery Minerals has signed its fourth binding offtake agreement for graphite concentrate from its Montepuez project. Eighty per cent of the forecast production of the mine has been sold a year before its first scheduled shipment.

Chinese company Qingdao Keshuo New Materials Technology – a specialist spherical graphite and anode producer – has signed up for 10 000 t/y of graphite concentrate over an initial three-year term.

The company has also signed offtake agreements with two Chinese entities –  Qingdao Black Dragon (10 000 t/y) and Qingdao Guangxing Electronic Materials (11 000 t/y).

The first binding offtake agreement was signed in December with US-based graphite processor Urbix Resources for 11 000 t/y of graphite concentrate.

Battery Minerals is aiming to be in production at Montepuez by December this year and is targeting its first shipment in the March quarter of 2019, at export rates of 45 000 t/y to 50 000 t/y at an average flake concentrate grade of 96.7% total graphitic carbon.

The company plans to increase production from Montepuez to more than 100 000 t/y graphite flake concentrate through expansion projects by 2022.

Battery Minerals has reported that it is progressing to finalise its mining licence for the project.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Battery Minerals, tel +61 8 9322 7600, fax +61 8 9322 7602 or email info@batteryminerals.com.