The Balama mine in northern Mozambique’s Cabo Delgado province will supply China with 9,000 tonnes of graphite per month from June this year until 2021, Australia’s Syrah Resources said.
Gredmann will be the intermediary for the sale of certain types of Syrah graphite in China, said the company that operates the Mozambican mine.
The contract, which runs until December 2021, will allow for the export of 279,000 tonnes of graphite from Mozambique.
Graphite was purchased by Chinese company Qingdao Langruite Graphite from Taiwan’s Gredmann company which served as an intermediary in the deal.
Graphite is used in electric car batteries and in March Syrah announced it was selling the mineral at a below-projected price but expects a recovery over the course of the year.
Demand for graphite is rising worldwide as it is a component used in batteries, at a time when markets for electric cars and other electrical products, such as drones, are expanding. (Macauhub)