Modern Mining June 2016

MINING News

Syrah secures five-year offtake agreement for Balama

ASX-listed Syrah Resources, which is developing the Balama graphite project in northern Mozambique, has signed a ‘Spherical Graphite Offtake Agreement’ with Marubeni Corporation (Marubeni), a major Japanese integrated trading and investment conglomerate. In terms of the five-year agreement, Marubeni will pur- chase a total of 50 000 tonnes of coated and uncoated spherical graphite per annum for major battery and anode cus- tomers in Japan and Korea. “We are very pleased to be able to con- clude another Offtake Agreement with Syrah, this time for spherical graphite,” says Marubeni General Manager, Inorganic Mineral Resources Sec, Specialty Chemicals Dept, Ryoichi Mano.“Marubeni has worked closely with Syrah to conduct pre-market- ing activities in Japan and Korea for nearly 18 months. Extensive test work has been performed on numerous samples pro-

cantly progressed product qualification with potential customers in such regions and anticipates being able to update the market on developments in such regions before long. The Marubeni agreement has validated our strategy and steadfast belief that the lithium ion battery market will be the major source of growth for the graphite sector in the upcoming years.” Syrah has already started on the con- struction of the Balama project, with commercial production scheduled to commence in early 2017. Detailed engi- neering and design is well advanced and civil and structural work has started on site. Steelwork and platework fabrication is well underway with deliveries to site starting this quarter (Q2). According to the feasibility study on Balama, the open-pit project will have a production of over 350 kt/a. The capital cost is estimated at US$144 million. 

vided by the company, and results have shown that Balama spherical graphite is superior to current material supplied from China, exceeding customers’ expectations. “We have also conducted due diligence on the Balama deposit and Syrah’s pilot spherical graphite plant. Initial annual volumes of 50 000 tonnes are satisfac- tory at this time. However, we expect the Japanese and Korean markets to expand significantly in the near term. We see Syrah playing a key role as the major supplier as the market grows.” Syrah’s Managing Director, Tolga Kumova, commented:“This agreement with Marubeni represents the largest Spherical Graphite Offtake Agreement that has been signed globally to date. Given that this vol- ume is only for the Japanese and Korean markets, further large opportunities remain available in the Chinese, North American and European markets. Syrah has signifi-

The Balama site where concrete works have commenced in the key areas of the crushing facility and primary mill foundations (photo: Syrah Resources).

June 2016  MODERN MINING  5