Magnis finds a Russian partner

PERTH (miningweekly.com) – Graphite developer Magnis Resources has signed a project financing and offtake memorandum of understanding (MoU) for super jumbo and jumbo flake graphite from its Nachu project, in Tanzania.

Magnis said on Monday that it would work with Russia’s Rosatom International Network to formalise an offtake agreement, once certain milestones had been met.

Discussions for the project financing would continue in tandem.

Magnis chairperson Frank Poullas told shareholders that the MoU was a key step in a binding offtake agreement for the super jumbo and jumbo products, and potential financing with the world’s largest nuclear power technology company.

“Rosatom is the world leader in the development and construction of nuclear reactors with over $130-billion worth of orders in place. Larger flake graphite, which our Nachu project will produce, is a key material used in these nuclear reactors and it is highly sought after. Our project, therefore, is strategically important to Rosatom over the longer term.”

Meanwhile, Magnis has terminated its offtake agreements with Sinosteel Liaoning and China National Materials Import and Export Corporation.

The Nachu project is expected to deliver about 220 000 t/y of graphite concentrate over a mine life of 15 years and can be developed at a capital cost of $269-million.