As a result, Montepuez is on track for commissioning in November, with its initial graphite shipment expected in the first quarter of 2019.
“This is a significant milestone for the company as it means we have approvals for stages 1 and 2 of our Montepuez graphite project and for production of at least 100,000 tonnes per annum of graphite concentrate,” Managing Director David Flanagan said.
The company is now looking to accelerate construction on all fronts, as it aims to produce at a rate of 45,000 to 50,000 tonnes per year in stage 1. Material will have an average flake concentrate grade of 97.7 percent total graphic carbon.
The Montepuez graphite project has a current life of 20 years, which the company expects to grow.
Demand for graphite, an essential component in the lithium-ion batteries used to power electric cars, is expected to surge in coming decades as electric vehicle sales continue to increase.
Battery Minerals has signed four binding offtake agreements for up to 41,000 tonnes per year of graphite concentrate, which represent over 80 percent of the project’s forecast yearly production.
The company is also developing the Balama Central graphite project in Northern Mozambique. The asset is next to Syrah Resources’ (ASX:SYR) Balama graphite mine, which began commercial production last November.
On Monday, shares of Battery Minerals closed up 1.22 percent in Sydney at AU$0.08. The company’s share price has been on an uptrend since January, and is up more than 22 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.