London — The Australian mining company Triton Minerals, which holds the rights to three graphite deposits in the northern Mozambican province of Cabo Delgado, on Thursday announced that it has reached its first binding agreement for the sale of its product.
The agreement is with the Chinese company Qingdao Tianshengda Graphite and covers up to 16,000 tonnes per annum over a four-year period. Under the terms of the agreement, the graphite will be sold at the prevailing market price, which Triton considers will place it in a good position “for any upward swing in the graphite price”.
According to Triton's managing director Peter Canterbury, “the binding offtake agreement is a significant achievement in the development of the Ancuabe Graphite Project. Securing this binding agreement and becoming part of the supply chain for Tianshengda illustrates the strong demand for premium Ancuabe graphite concentrate, growth of the expandable graphite market in China, and the vision of Chinese graphite producers to diversify their supply base in response to domestic shortages and legislative changes”.
He added, “the offtake agreement also assists Triton to accelerate other development objectives - including engineering, procurement and construction, approvals and finance - with the confidence of secured offtake and favourable pricing”.
Triton hopes to begin graphite production in Ancuabe district in the first half of next year.
Graphite is a form of carbon that is highly valued due to its properties as a conductor of electricity. It is used in batteries and fuel cells and is the basis for the “miracle material” graphene, which is the strongest material ever measured, with vast potential for use in the electronics industries.