PERTH (miningweekly.com) – The Mozambique government has awarded ASX-listed Battery Minerals a mining licence for its Balama Central graphite project, allowing for the production of 50 000 t/y of graphite concentrate.
“This is another important milestone for the Balama Central graphite project for production of graphite concentrate,” said chairperson David Flanagan.
A previously completed feasibility study into the Balama Central project estimated that it would require a capital investment of $69.4-million to support the production of 58 000 t/y of concentrate over a mine life of 27 years.
“We look forward to completing our sale agreement for our Mozambican graphite assets with Tirupati Graphite announced in August in the coming months,” said Flanagan.
Battery Minerals will receive A$12.5-million in cash and Tirupati Graphite shares in exchange for the Montepuez and Balama graphite projects in Mozambique, under the deal signed in August.
Battery Minerals will become the second largest shareholder in the LSE-listed company, subject to government and shareholder approval.
With the sale of its Mozambique assets, Battery Minerals will continue to focus on its Australian mineral exploration assets.