The graphite developer has agreed to sell up to 16,000 tonnes per year of graphite concentrate from the mine to China’s Qingdao Chengyang Graphite.
The graphite developer has agreed to sale up to 16,000 tonnes per year of graphite concentrate from the mine to China’s Qingdao Chengyang Graphite.
“Securing binding agreements for up to 50 percent of forecast annual production with experienced graphite producers … demonstrates the success of Triton’s product marketing strategy and the demand for large flake, high purity graphite in the Chinese market,” said Peter Canterbury, Triton managing director.
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 by prevailing market prices in China.
“In addition, this external support for the Ancuabe graphite project provides strong momentum for our engineering, procurement and construction financing and development objectives,” Canterbury added.
Looking ahead, Triton expects to make an investment decision in 2018 and estimates Ancuabe will produce its first graphite in the second half of 2019.
A definitive feasibility study on the project indicates that it would require production capital of US$99.4 million to build a mine, with output of about 60,000 tonnes of graphite concentrate per year.
Last month, Triton signed its first binding offtake agreement with Tianshengda Graphite for up to 16,000 tonnes per year of production at Ancuabe. As a result, the company has now committed over 50 percent of planned production at Ancuabe.
Aside from this asset, the company holds interest in other two graphite projects in Mozambique, the Balama North and the Balama South.
On Wednesday, shares of Triton Minerals were trading up 1.41 percent in Sydney at AU$0.07. The company’s share price has declined 26.80 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.