PERTH (miningweekly.com) – Graphite developer Syrah Resources has signed an offtake agreement for 30 000 t of graphite from its Balama operation, in Mozambique.
The sales agreement with Jixi BTR Graphite Industrial would see the graphite being supplied during the first year of the Balama operation, the company reported on Friday.
“This contract is a significant and material step forward for Syrah. The relationship with BTR will see Syrah’s high-quality graphite placed into the lithium-ion battery market,” said MD and CEO Shaun Verner.
“In confirming this binding sales agreement with the world’s largest battery anode manufacturer, Syrah will enter the leading geographic market for natural graphite with confidence and capitalise on the significant forecast growth in electric vehicle and energy storage markets.”
The Balama operation is expected to produce an average of 365 000 t/y of graphite concentrate during its first ten years of production, to deliver free cash flow of $160-million a year.
The project is expected to be commissioned in the second quarter of this year.