Graphite developer Triton Minerals has signed its first offtake agreement over the Ancuabe graphite project, in Mozambique.
Triton has inked a binding sales agreement with China’s Qingdao Tianshengda Graphite Company for up to 16 000 t/y of graphite concentrate from the mine, for a period of at least five years.
The companies would have the option to extend the offtake by a further five years, with a minimum of 10 000 t/y to be taken up during the contract time, across a range of graphite product specifications.
The price of the graphite concentrate will be determined for every six months of the tern of the agreement, by referencing the prevailing market prices in China, adjusted for flake size and concentrate grade.
“The binding offtake agreement is a significant achievement in the development of the Ancuabe graphite project,” said Triton MD Peter Canterbury.
“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 the vision of Chinese graphite producers to diversify their supply base in response to domestic shortages and legislative changes.”
Canterbury said that these factors underscored the value of the Ancuabe graphite project and Triton’s position to supply large flake graphite into China and other global markets.
A definitive feasibility study on the Ancuabe project estimated that it would require preproduction capital of $99.4-million to build a mine that is capable of producing about 60 000 t/y of graphite concentrate.
The project is expected to produce its first graphite in the second half of 2019. source: miningweekly.com