Mining company Triton Minerals has signed a contract with the Yichang Xincheng Graphite Co. (YXGC), of China, for the supply of graphite mined in Mozambique, the Australian company said in a statement sent to Macauhub Wednesday.
With the contract, which is for 20 years and a minimum value of US$2 billion, the Australian mining company also now holds the exclusive rights to supply graphite to YXGC in Malawi, Madagascar and Tanzania, as well as Mozambique.
The commercial contract guarantees a minimum sale price of US$1,000 per ton of graphite that the Chinese company will purchase during the 20-year contract period, with the overall value of the deal set at a minimum of US$2 billion.
The chief executive of Triton Minerals, Brad Boyle stressed the importance of establishing a business partner “recognised worldwide for the wide range of graphite products it produces,” adding that this contract, which is “one of the largest in the graphite market,” is an “encouraging step in the development” of projects that the company owns in Mozambique.
Indicating that the YXGC is currently “the largest Chinese private producer of high value graphite products,” the company’s president, Yue Bin, highlighted the quality of graphite extracted in Mozambique, “that exceeded (the initial) expectations” of the company, noting that the agreement would make it easier to procure this raw material at “competitive prices” and indirectly drive “economic growth in Mozambique.”
Headquartered in the region of Yichang, Hubei Province, YXGC develops products for various industries such as oil, chemical, metallurgy, machinery, automotive, and aerospace, among others, acting in the Chinese market and in more than 20 countries, according to the statement.
In Mozambique, Triton Minerals holds exploration rights on three graphite and vanadium concessions in the province of Cabo Delgado, in the north, where the Balama Norte project, where Monte Nicanda is located, is a priority area for the start of operating activities, given the estimate that it may contain the “largest graphite reserves” known worldwide.
To start the project, Triton Minerals plans to invest US$110 million and, in late January it reached an agreement with Long State Investments Ltd, a company based in Hong Kong, which will provide a loan of about US$15.7 million over two years.
This week the company signed an agreement for a two-year strategic alliance in Mozambique with AMG Mining AG through its subsidiary GK Ancuabe Graphite Mine, in which the parties will work on exploration, identification and development of graphite occurrences in Ancuabe district, where Triton Minerals has another concession.
Triton Minerals has a majority stake of 80 percent in the three projects it explores in Mozambique – Ancuabe, Balama Norte and Balama Sul – and the remaining share (20 percent) is owned by Grafex Ltd. (macauhub/CN/MZ)