Battery Metals

ASX:TON

The graphite developer has agreed to sell up to 16,000 tonnes per year of graphite concentrate from the mine to China’s Qingdao Tianshengda Graphite.

Australian-listed Triton Minerals (ASX:TON) has signed the first binding graphite offtake deal for its Ancuabe project, the company announced on Thursday (April 19).

The graphite developer has agreed to sell up to 16,000 tonnes per year of graphite concentrate from the mine to China’s Qingdao Tianshengda Graphite.

“The binding offtake agreement is a significant achievement in the development of [Ancuabe],” said Managing Director Peter Canterbury.

The offtake deal is set for at least five years with a seller option for a further five. The price of graphite will be determined every six months at prevailing market prices in China.

“Securing this binding agreement and becoming part of the supply chain for Tianshengda illustrates the strong demand for premium Ancuabe graphite concentrate,” Canterbury said.

Chinese graphite processor Tianshengda has an annual capacity of 30,000 to 40,000 tonnes of value-added graphite products per year.

“[The deal also shows] the growth of the expandable graphite market in China, and the vision of Chinese graphite producers to diversify their supply base in response to domestic shortages and legislative changes,” Canterbury added.  

The agreement will also allow Triton to accelerate other development objectives, including engineering, procurement and construction, approvals and project financing.

Looking ahead, Triton is expecting Ancuabe to produce its first graphite in the second half of 2019.

Triton has also signed a term sheet agreement with Haida Graphite for up to 16,000 tonnes per year of production at Ancuabe. Once the deal is converted to a binding agreement, the company will have committed over 50 percent of planned production at Ancuabe.

Aside from this asset, the company holds interests in other two graphite projects in Mozambique, Balama North and the Balama South.

On Thursday, shares of Triton Minerals were trading up 1.3 percent in Sydney at AU$0.07. The company’s share price has declined 19.59 percent year-to-date.

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Securities Disclosure: I, Priscila Barrera, hold no direct investment interest in any company mentioned in this article.

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