Syrah Resources will supply Chinese company Zhanjiang Juxin New Energy Materials with 20,000 tons of graphite to be extracted at the Basawa concession, in Cabo Delgado province, Mozambique in 2018, the Australian mining company said in a stock market filing.
Syrah said that, other than the amount of graphite to be supplied to Zhanjiang Juxin New Energy Materials Co. Ltd, the remaining details of the contract are confidential.
The Chinese company, founded in 2006, is headquartered in Guangdong province, and specialises in the production of spherical graphite and materials for manufacturing anodes for lithium-ion batteries, selling its products on the domestic market and abroad.
Shaun Verner, chief executive of Syrah Resources, said in the statement that the Basawa concession is the only large graphite project currently in operation with a planned production for 2018 of 160 to 180,000 tons, which puts the company in a strong position to meet growing demand from the electric vehicles and energy storage markets.
Syrah Resources announced last September it had signed a contract to provide 30,000 tons of graphite to Jixi BTR Graphite Industrial, a subsidiary of the Chinese group with headquarters in Shenzhen BTR New Energy Materials.
The Basawa concession, in Cabo Delgado province, is approximately 200 kilometres west of the port city of Pemba, with proven and probable reserves of 81.4 million tons and a graphite content of 13.2 million tons. (macauhub)