Battery Minerals granted graphite mining license in Montepuez, Cabo Delgado

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Battery Minerals granted graphite mining license in Montepuez, Cabo Delgado

6:56 CAT | 27 Mar 2018

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Battery Minerals inspect mapping of the Montepuez graphite project. Photo: SmallCaps

The Australian mining company Battery Minerals (formerly known as Metals of Africa) on Monday announced that it has been granted a mining licence for its Montepuez graphite project in the northern Mozambican province of Cabo Delgado.

The company now has in place all the conditions to begin production by the end of this year. When exports begin early next year the company will be shipping between 45,000 and 50,000 tonnes per year of graphite concentrate. In phase two, production will increase to at least 100,000 tonnes per year.

According to a statement from Battery Minerals, it has “passed another major milestone in its path to becoming a significant graphite supplier to the lithium battery industry”.

Battery Minerals Managing Director David Flanagan stressed his gratitude to the Minister of Mineral Resources and Energy, Max Tonela, and his staff “for granting our Mining Licence and their efficient processing of our Mining Licence application”.

The company has already signed four binding offtake agreements for up to 41,000 tonnes per annum of graphite concentrate. The graphite will be trucked to the port of Pemba where it will be shipped to market.

When operational, the project will create more than 170 local jobs. The project has a mine life of twenty years.

Graphite is a form of carbon that is highly valued due to its properties as a conductor of electricity. It is used in batteries and fuel cells and is the basis for the “miracle material” graphene, which is the strongest material ever measured, with vast potential for use in the electronics industries.

The company expects there to be a global shortage of graphite from 2020 due to a huge increase in demand for electric vehicles and rechargeable batteries.

Source: AIM