Syrah Resources is expected to reach the planned target of 101,000 – 106,000 kilogrammes of graphite concentrate by the end of the year, the Australian company said in a market filing.
In the statement, which announces significant improvements in the graphite extraction project in Balama, northern Mozambique, the company points out that in November it achieved an average level of 74% in graphite recovery, compared to 53% in the third quarter and 54% in September.
Syrah Resources said it was looking at the supply chain to reduce inventory, particularly at the port of Nacala.
“The results obtained at the Balama mine are proving to be solid,” the statement said, recalling the significant improvements introduced in the process of exploring graphite deposits.
Syrah informed the market last November it had signed two more graphite sales contracts, one of which with Chinese company Qingdao Freyr Graphite Co., Ltd, to supply 6,000 tonnes of coarse graphite flakes over the next 12 months.
The Australian company had announced a week before it had signed a contract to supply graphite to China’s Qingdao Taida-Huarun New Energy Technology Co. Ltd. under a binding contract to supply 20,000 tonnes.
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 tonnes of graphite, much of which has already been exported through the port of Nacala, in the province of Nampula.