africa commodities Economy FDI Graphite Mining Natural Resources Tanzania

Tanzania: Volt signs fourth graphite offtake agreement

Graphite developer Volt Resources has signed a fourth offtake agreement with a Chinese customer, filling in full the Stage 1 capacity of its Namangale project, in Tanzania.

Qingdao Tianshengda Graphite has signed an offtake term sheet for an initial 10 000 t/y of flake graphite product from the Namangale project, Volt said on Monday, adding that the recent changes to the Tanzanian mining law had not deterred customer confidence in the project.

“It is encouraging to see our business-as-usual approach with prospective customers has delivered our fourth agreement with a Chinese group this year,” said Volt CEO Trevor Matthews.

Volt now has indicative commitments for a minimum of 36 000 t/y to a maximum of 51 000 t/y of graphite product for the Stage 1 production.

Matthews said that with development funding discussions continuing with a number of groups, the ability to complete the offtake agreements prior to completing the Stage 1 feasibility study improved investor confidence in the company and the project.

Volt is hoping to ink a binding offtake agreement with Qingdao by the end of September this year.

Source: Mining Weekly

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