Battery Minerals has covered 80% of production through offtake agreements

Battery Minerals has signed an offtake agreement with Qingdao Keshuo New Minerals Technology over the former’s Montepuez project in Mozambique.

This is Battery Mineral’s fourth offtake agreement on the upcoming project in just over a month; 80 per cent of the company’s Montepuez production costs are now covered following similar deals with US-based Urbix Resources, (announced December 19), and Qingdao subsidisaries Black Dragon Graphite and Guangxing Electronic Materials (GEM) last week.

This latest agreement with graphite and anode production company Keshuo, based in Shandong, China, is for the supply of 10,000 tonnes a year (t/y) of graphite concentrate over three years, the same agreement made previously with GEM and Black Dragon; the Urbix agreement is for a minimum of 5000t/y over three years, with the option of an additional 6000t/y.

David Flanagan, executive chairman of Battery Minerals, said the agreement was an important one for the company as Keshuo’s involvement “as a leading battery anode producer” was indicative of the quality of graphite at Montepuez.

“We now have four binding offtake agreements covering up to 80 per cent of our forecast annual production from Montepuez,” he said.

“At the same time, we are moving to finalise our mining licence this quarter as part of our strategy to be in production by December 2018 and compete our first shipment in the March quarter of 2019.”

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