Mozambique Mining: Syrah Resources signs another contract for graphite sale

Syrah Resources has signed two new contracts for the sale of graphite to be extracted at the Balama mine in northern Mozambique, one of which is with China’s Qingdao Freyr Graphite Co., Ltd, the Australian company said in a market filing.

The contract signed with Qingdao Freyr Graphite for the supply of 6,000 tons of graphite over the next 12 months is the first signed with a company from China for the supply of coarse graphite flakes.

Freyr Graphite is a company based in Qingdao, Shandong Province, specialising in the production of expanded graphite.

The second deal was struck on the spot market with the sale to a Japanese company of 98% carbon graphite, which is the first time that Syrah Resources has sold graphite with that degree of purity.

The Australian company’s CEO, Shaun Verner of Australia is quoted in the statement as saying that the contract with Qingdao Freyr accounts for over 10% of the production of graphite flakes over the next year and “makes Syrah Resources one of the main suppliers of natural graphite to China.”

The Australian company announced last week it had signed a contract to supply graphite to China’s Qingdao Taida-Huarun New Energy Technology Co. Ltd. under a binding contract to supply 20,000 tons.

Taida-Huarun New Energy Technology Co. Ltd., based in Qingdao, in China’s Shandong Province, develops and manufactures carbon-based products including graphite beads for battery production.

Syrah Resources is involved in a graphite extraction project in Balama, Cabo Delgado, northern Mozambique, which since the beginning of exploration and processing in November 2017 has produced more than 160,000 tons of graphite, much of which has already been exported through the port of Nacala, in the province of Nampula. (Source: macauhub)