Syrah to sell graphite to Chinese company

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Syrah to sell graphite to Chinese company

9:10 CAT | 26 Dec 2018

In file CoM

The Australian mining company Syrah Resources, which operates the graphite mine in Balama district, in the northern Mozambican province of Cabo Delgado, has announced that it has reached a binding sales agreement with the Chinese company, Quingdao Langruit Graphite.

Under the agreement the Chinese company will purchase 48,000 tonnes of graphite from the Balama mine in 2019, with an option for Syrah selling Langruit an extra 12,000 tonnes.

According to a Syrah press release, the agreement “includes the sale of both fine and coarse flake products, across a range of fixed carbon grades”. But all other details of this deal (such as the price) are confidential.

Langruit is related to Qingdao Guangxing Electronic Materials Co. Ltd., with which Syrah has developing business throughout 2018. Guangxing, according to the Syrah release, is active across all major segments of the graphite market, including spherical graphite and refractory materials from their own facilities and trading activities.

The Syrah managing director, Shaun Vermer, commented “Syrah continues to establish itself as a significant supplier of natural graphite into China. Our relationship with Langruite will enable further diversification of Balama graphite sales across a range of end uses and provides flexibility in product delivery. We look forward to a successful relationship with Langruite.”

Syrah claims that its Balama mine is the world‘s “premier producer of high quality graphite”. The company has been producing natural flake graphite at Balama since November 2017. It launched shipments from the mine in the first quarter of this year.

Thanks to the Syrah mine, Mozambique is now among the world’s main producers of graphite, beaten only by China, India, Brazil and Canada.

Source: AIM