Name of the Project
Montepuez graphite project.

Location
Mozambique.

Project Owner/s
Battery Minerals.

Project Description
Montepuez Stage 1 is a 50 000 t/y graphite flake project. 

The current project life is 20 years, which Battery Minerals expects to expand to about 100 000 t/y in Stage 2. 

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 definitive feasibility study (DFS) to two years in the value engineering study.

Capital Expenditure
Not stated.

Planned Start/End Date
Steady-state production is expected in the final quarter of 2019.

Complete ramp-up of the first stage of the mine is expected in the third quarter of 2019.

Latest Developments
Battery Minerals has signed a memorandum of understanding (MoU) with US-based graphite processing specialist Urbix for a potential joint venture (JV), in Mozambique.

Under the terms of the MoU, the two companies will work together to develop an environment-friendly graphite purification facility in completing all the necessary feasibility study work.

It is envisaged that the facility will source graphite concentrate from Battery Minerals’ Montepuez project, as well as potentially toll-treat graphite from other mines in the area, and will use the proprietary Urbix purification method.

“The proposed processing JV with Urbix is aimed at ensuring we are well positioned to capitalise on the demand for not only graphite concentrate but also the higher-margin processed product which is essential to the battery manufacturers,” Battery Minerals MD Jeremy Sinclair has said.

“. . . we believe there is excellent potential to reduce the cost of developing Montepuez through a partnership approach with contractors. The strong outlook for the project is also reflected in the fact that some contractors have expressed an interest in being part of the project funding package.”

As part of its funding strategy, Battery Minerals has been investigating options to reduce the capital expenditure at its project, including a review of the owner-operator model currently proposed for Montepuez.

The company has said that the switch to a contracting model could reduce the current funding requirements for Montepuez of $55-million by up to $6-million.

This reduction in funding requirements, combined with the participation of contractors in the funding solution, will be weighed against possible increases in operating costs, which could result from the shift towards a contractor model.

Key Contracts and Suppliers
ThirdWay Africa (capital adviser).

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.