PERTH (miningweekly.com) – ASX-listed Triton Minerals has inked a binding offtake agreement with Chinese graphite product specialist Yichang Xincheng Graphite Co for the entire production from its pilot plant at the Ancuabe graphite project, in Mozambique.
The offtake agreement follows the recent start of a strategic review into the project, focused on bringing the project into production sooner, at a small-scale, low capital cost, and on a commercially viable basis.
A commercial pilot plant (CPP) will be brought into production soon, and will produce commercially viable quantities of concentrate which will prove the viability of both the product and of the large-scale project, at some 60 000 t/y, in the longer term.
The offtake agreement has a five-year term and encompasses an initial 50 000 t, with an option for a further 50 000 t, priced at market price.
Triton executive director Andrew Frazer said that the binding commercial agreement was with a graphite specialist organisation that had mined, manufactured and sold expandable graphite products for nearly ten years.
“We are both proud and fortunate to be associated with a world-renowned, leading graphite company that supplies materials to some of the world’s most distinguished electronics and technology companies.”
In addition to the offtake agreement, Triton would also assist Yichang Xincheng Graphite Co with sourcing graphite concentrate purchase opportunities, while pursuing further offtake opportunities for its Ancuabe project.
A definitive feasibility study on the Ancuabe project estimated that it would require preproduction capital of $99.4-million to build a mine that is capable of producing about 60 000 t/y of graphite concentrate.