Battery Minerals has secured an offtake agreement with Qingdao Guangxing Electronic Materials (GEM) for development of its Montepuez graphite project in Mozambique.
The agreement covers 10,000 tonnes a year of graphite concentrate for the next three years and Battery Minerals has now covered 40 per cent of its annual production already if a previous sales agreement with US company Urbix Resources is included.
David Flanagan, executive chairman of Battery Minerals, said the agreements were indicative of the quality of the project.
“We have tailored the Montepuez project so that it is extremely bankable,” he explained. “It generates a product which meets the needs of battery manufacturer, delivers extensive benefits to the local community and creates strong returns for shareholders.
“With two binding offtake agreements now signed, we are more confident than ever that we will achieve all these objectives.”
The company plans to commence graphite production on the last quarter of 2018 for first shipment in the first quarter of 2019.