Chinese group may increase financing of graphite mining in Mozambique

3 June 2015

Chinese group Shenzhen Qianhai Zhongjin is expected to finance more than one graphite exploration operation of Triton Minerals in northern Mozambique, the Australian mining company said in a statement sent to Macauhub in Maputo.

After signing a letter of intent with Triton Minerals to provide funding of US$200 million for development of the Monte Nicanda project, the Chinese group is studying the possibility of extending the preliminary agreement to the concession granted to the Australian in Ancuabe, also in the province of Cabo Delgado.

This decision follows contacts between the Shenzhen Qianhai Zhongjin Group (SQZG) and two Chinese ministries, which led the group to consider that the assets of Triton Minerals in Mozambique may be strategic for the country, according to the press release.

So far, Triton Minerals’ exploration activities in the three concessions it holds in Mozambique have seen most progress in Balama North, where Monte Nicanda is located, and the results of the research indicate it contains the “biggest deposit of graphite and vanadium known worldwide.”

But following the “encouraging results” in both areas, SQZC requested a six-month extension of the letter of intent in order to assess the possibility of integrating the Ancuabe concession in the pre-agreement, whose initial provisions remain unchanged, Triton Minerals said.

The Australian mining company said the period requested by SQZC would give it “enough time” to conduct “initial drilling and further testing, as well as obtaining metallurgical results for the Ancuabe graphite project.”

The initial agreement provides for a direct investment of US$100 million by SZQG in Triton Minerals, and the remaining amount (US$100 million dollars) will be granted through a loan. (macauhub/CN/MZ)