Graphite developer Armadale Capital has signed a memorandum
of understanding (MoU) with Chinese miner and processor
Matrass Group for the offtake of 30,000 tonnes per year of
flake graphite from Armadale’s Mahenge Liandu
project in Tanzania.
The unbinding MoU will run for an initial five-year period,
and will cover about 60% of Armadale’s expected
output from the Tanzania mine.
A further 19,000 tpy of expected output remains to be
covered, with the company still in discussions with a number of
potential customers to book the remaining volumes.
There is "growing market demand for graphite from the region
[in Tanzania]," Nick Johansen, director of Armadale, said,
citing a recent binding offtake agreement that fellow graphite
miner Black Rock Mining has earmarked for 205,000 tpy from its
project. Johansen expects full production output to be booked
under future agreements.
Armadale is carrying out test work on graphite samples from
Mahenge Liandu to turn the deal into a binding one by the end
of the current quarter and working on the feasibility study and
environmental and social impact study for the project.
Fastmarkets’ assessment of the price of flake
graphite, 94-97% C, +80 mesh, was $900-1,200 per tonne cif
Europe on Thursday February 21, unchanged since the beginning
of the year.
The price of flake graphite, 94-97% C, +100 mesh, was
assessed at $800-1,000 per tonne cif Europe on the same day,
unchanged since November 2018. While the price of flake
graphite, 94-97% C, -100 mesh, was assessed at $650-840 per
tonne cif Europe, also unchanged since November 1, 2018.
In a separate development, Canadian junior miner NextSource
Materials has been granted a 40-year mining license for the
Molo Graphite Project in Madagascar.
The mining license, issued by the Madagascan government,
does not limit mining to any specific volume, which the company
says it will be able to produce in line with evolving market
"The company can now implement the final steps in our mine
development schedule toward achieving production in early
2020," Craig Scherba, president and chief executive of
NextSource said in a statement.