Syrah Resources’ mining agreement for the Balama graphite operation in Mozambique, Africa has been sanctioned.
The milestone completes all of the required steps for the mining agreement to be binding and enforceable, according to Syrah.
The mining agreement consolidates all project documents and approvals. It provides the company with clarity around governing laws, mining rights and other obligations for the Balama operation, including mining rights and tax laws.
Syrah managing director Shaun Verner said the finalisation of the mining agreement represented another significant milestone for the company, reaffirming the Mozambique Government’s commitment to the mine.
“Balama has been operating since commencement in accordance with the agreed terms and our stakeholders can be even more confident that the company will be able to conduct its operations under a stable legal, fiscal and operating regime, which underpins Syrah’s position as the world’s premier producer of high quality graphite now, and into the future,” Verner said.
Syrah, which is targeting battery market with its product, has been producing natural flake graphite at Balama since November 2017. It launched shipments from the site in the first quarter of this year.
The mining agreement covers the mining of both graphite and vanadium at the Balama site until 2038.