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Magnis Resources (ASX:MNS) signed its second, new Binding Offtake Agreement with China-based Sinosteel Liaoning for 100,000 tonnes of graphite per annum across all size ranges for a period of 10 years with an option to extend for a further 5 years.
This new agreement follows the agreement announced on December 17, 2014 with SINOMA for 80,000 tonnes per annum over an initial 5 years with an option to extend.
This new agreement follows the agreement announced on December 17, 2014 with SINOMA for 80,000 tonnes per annum over an initial 5 years with an option to extend.
As quoted in the press release:
Under the new Offtake Agreement Sinosteel has agreed to purchase 100,000 tonnes of graphite per annum across all size ranges for a period of 10 years with an option to extend for a further 5 years.
Sinosteel has been involved in the graphite industry for many decades. There are more than eight graphite production facilities under the control of Sinosteel, with combined production in excess of 220,000 tonnes pa.
As a precursor to this announcement, on 3 September 2014 an MOU for offtake was signed with a JV between Sinosteel and Dalian InterContinental New Materials Corp (Figure 1). In the past few months samples were sent to Sinosteel to be tested at their Graphite Processing Plant. These samples were derived from large scale metallurgical test work that resulted in an average grade over 95%TGC, with the majority of the product in Super Jumbo, Jumbo and Large categories.
Magnis Resources Chairman, Frank Poullas, said:
Today’s announcement is another important step for the success of both Magnis Resources and the graphite industry. The signing of a second binding agreement is testament to the growth we are seeing in the EV market.
Click here to read the Magnis Resources (ASX:MNS) press release
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