By Oscar Nkala
Chinese graphite processor and distributor Tianshengda Graphite and Australian miner Triton Minerals have entered into a binding offtake agreement for the supply of high quality graphite from the Ancuabe Mine in Mozambique.
In a statement, Triton Minerals said the first-ever supply agreement for high quality Mozambican flake will run for a period of five years. The deal includes an option to supply the large and jumbo flake for an extra five years after the lapse of the first agreement.
Triton managing director Peter Canterbury hailed the offtake agreement as a market breakthrough for the company.
“Securing this binding agreement and becoming part of the supply chain for Tianshengda illustrates the strong demand for premium Ancuabe graphite concentrate, growth of the expandable graphite market in China, and vision of Chinese graphite producers to diversify their supply base in response to domestic shortages and legislative changes. These factors underscore the value of the Ancuabe graphite project.”” he said.
In terms of the agreement, Triton will supply at least 16 000 tonnes of graphite annually to Tianshengda, an integrated Chinese graphite processor and distributor with an annual capacity of up to 40,000 tonnes of value-add graphite per annum.
The agreement also requires Triton to make an investment decision and obtain Mozambique government approvals and mining concession to meet pre-conditions for the deal.
The company will invest A$60.4 million in a development phase that includes construction of the mine and relevant infrastructure. Initial production at Ancuabe is expected to start in the second half of 2019.