Syrah Resources will supply graphite extracted in Mozambique to China’s Qingdao Taida-Huarun New Energy Technology Co. Ltd. under a binding contract, the Australian company said in a statement released on Wednesday.
The Syrah Resources statement announced that the agreement had entered into force immediately and stipulated for the supply of 20,000 tonnes of graphite to be extracted at the Balama mine in the province of Cabo Delgado by 31 August, 2019.
“All other details of this contract of sale are confidential,” the statement said.
Taida-Huarun New Energy Technology Co. Ltd., based in Qingdao, in China’s Shandong Province, develops and manufactures carbon-based products including graphite beads for battery production.
Syrah Resources is involved in a graphite extraction project in Balama, Cabo Delgado, northern Mozambique, which since the beginning of exploration and processing in November 2017 has produced more than 160,000 tons of graphite, much of which has already been exported through the port of Nacala, in the province of Nampula.