PERTH (miningweekly.com) – Graphite developer Syrah Resources is a step closer to an offtake agreement at its Balama project, in Mozambique.
The company reported on Wednesday that it had signed a statement of sales intent (SSI) with one of the world’s largest refractory producers, which intended to purchase up to 15 000 t/y of natural graphite from Balama.
The SSI would be valid for a ten-year period.
“The SSI represents the first agreement between a major end-user and an emerging graphite producer,” said Syrah MD Tolga Kumova.
“Refractory applications are currently the largest driver of graphite demand and we are very excited to work with a leading company in this area. This agreement reflects the strong confidence that industry participants have in the Balama project, and the quality of its graphite concentrate.”
Initial concentrate samples have been provided to the potential offtake partner, and have satisfied their internal product qualification process.
Syrah’s flagship project’s ore reserve had an average grade of 16.2% graphitic content, using a 9% cutoff grade, comprising 13.2-million tons of contained flake graphite.
Located about 240 km west of the port town of Pemba in the Cabo Delgado province in northern Mozambique, the project site is accessible by a major sealed road.
Edited by: Creamer Media Reporter
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