The Balama graphite project, in Mozambique, remains on track to produce its first product in the first quarter of 2017. ASX-listed Syrah Resources on Monday reported that detailed engineering design work was progressing as planned and that long-lead capital equipment items had been identified and would be ordered in the coming months.
A construction licence had been approved and bulk earthworks at the processing plant and access road were under way, while design for the civil works was well advanced.
A recent feasibility study estimated that the Balama project would require a capital investment of some $138-million to deliver a 380 000 t/y operation. During the first ten years of operation, in which the mine was expected to produce at an average rate of 365 000 t/y graphite concentrate, the Balama project would deliver a free cash flow of $160-million a year. Earlier this month, Syrah successfully completed a A$211-million capital raise to advance the development of the project.
“The completion of a fully underwritten capital raising during volatile financial markets and a general commodities downturn reaffirms the confidence of global investors in the strength of the Balama project and the fundamentals of the graphite market,” said Syrah MD Tolga Kumova.
“The project development, operational and marketing teams are now working closely together to ensure the successful construction and ramp-up of the Balama project by the first quarter of 2017 and to establish Syrah as the leading and largest producer of high-quality graphite products in the world.”(Source: Miningweekly)