Syrah Signs Three-year Offtake with Japan's Marubeni

Syrah Resources Ltd. (ASX:SYR) announced that it’s signed an offtake agreement with Japan’s Marubeni Corp. (TSE:8002).
The deal is for a duration of three years, and during that time Marubeni will have the exclusive right to import and sell flake graphite from Syrah’s Balama project in Japan and Korea (the Territory). Marubeni will purchase 20,000 tonnes of flake graphite of various sizes from Balama each year.
As quoted in the press release:

Marubeni will then market these Products to its customers for traditional applications such as refractory, foundry, powder metallurgy, lubricants, carbon brushes, conductive additives, construction, crucibles, sealing and expandable graphite.
Product prices will be negotiated on a quarterly basis between the parties with reference to the market prices prevailing in the Territory.

Tolga Kumova, managing director of Syrah, commented:

This agreement represents another significant Offtake Agreement that we have signed in the traditional flake graphite market. Syrah has worked closely with Marubeni for over 14 months to successfully complete product qualification and due diligence with various potential customers in Japan and Korea. We are very pleased to finalise this agreement with such a credible and well-regarded international partner.

Click here to read the full Syrah Resources Ltd. (ASX:SYR) press release.