ASX-listed Syrah Resources, which is developing the Balama graphite project in northern Mozambique, has signed a ‘Spherical Graphite Offtake Agreement’ with Marubeni Corporation (Marubeni), a major Japanese integrated trading and investment conglomerate. In terms of the five-year agreement, Marubeni will purchase a total of 50 000 tonnes of coated and uncoated spherical graphite per annum for major battery and anode customers in Japan and Korea.
The Balama site where concrete works have commenced in the key areas of the crushing facility and primary mill foundations (photo: Syrah Resources).
Syrah’s Managing Director, Tolga Kumova, commented: “This agreement with Marubeni represents the largest Spherical Graphite Offtake Agreement that has been signed globally to date. Given that this volume is only for the Japanese and Korean markets, further large opportunities remain available in the Chinese, North American and European markets. Syrah has significantly progressed product qualification with potential customers in such regions and anticipates being able to update the market on developments in such regions before long. The Marubeni agreement has validated our strategy and steadfast belief that the lithium ion battery market will be the major source of growth for the graphite sector in the upcoming years.”
Construction of the Balama graphite project is currently underway, with commercial production scheduled to commence in early 2017. Detailed engineering and design is well advanced and civil and structural work has started on site. Steelwork and platework fabrication is in progress with deliveries to site starting this quarter (Q2).
Based on a mining feed rate of 2 Mt/a at an average head grade of approximately 19 % TGC over the first 10 years of operations, Balama will produce approximately 355 000 tonnes of graphite concentrate per annum. The capital cost is estimated at US$144 million.
