Twigg Exploration and Mining, a subsidiary of Syrah Resources, has signed an agreement with the Mozambican government to operate graphite deposits in Balama, northern Cabo Delgado province, the company said in a statement on Tuesday.
The company said in the statement that the Minister of Mineral Resources and Energy, Max Tonela, signing the agreement was the last step before the mining agreement can be taken to the Administrative Court for approval, after which it will be binding.
The mining agreement consolidates all previously submitted documents and their approvals, clarifies the applicable legislation and establishes a contract regarding mining rights and other obligations.
The company announced in early December it had signed a contract to supply Chinese company Zhanjiang Juxin New Energy Materials with 20,000 tons of graphite to be mined in Balama, throughout 2018.
Syrah Resources announced in September 2017 that it had signed a contract to provide 30,000 tons of graphite to Jixi BTR Graphite Industrial, a subsidiary of Shenzhen-based Chinese group BTR New Energy Materials.
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 tons, with a graphite content of 13.2 million tons. (macauhub)