The Syrah Resources group will sell graphite mined at the Balama concession in northern Mozambique to Jixi BTR Graphite Industrial, a subsidiary of Shenzhen-based Chinese group BTR New Energy Materials, the Australian company said in a recent statement to the market.
The contract stipulates that Syrah Resources will supply 30,000 tonnes of graphite in the first year of production, the statement said, the remaining clauses of the document signed between the two companies will remain confidential.
The statement said, however, that the two companies will continue to cooperate under a previously announced Memorandum of Understanding, namely on supply chain management.
The BTR New Energy Materials group manufactures and markets graphite anodes for lithium-ion batteries, among many other electronic, solar energy and composite materials products.
The Balama concession, in Cabo Delgado province, is about 200 kilometres west of the port city of Pemba, with proven and probable reserves of 81.4 million tonnes, with a graphite content of 13.2 million tonnes.
At the end of August, the Mozambican government approved the terms of the mining contract for the exploration of graphite deposits by Twigg Exploration & Mining Limited, a subsidiary of Australian group Syrah Resources.
The contract with Twigg Exploration & Mining Limited has a term of 25 years and requires a minimum investment of US$87.99 million. (macauhub)