Battery secures 60% offtakes

Battery Minerals has locked in offtake agreements for 60 per cent of the forecast annual production at its Montepuez graphite project in Mozambique after announcing a supply deal with a Chinese company today.

Battery has agreed to supply 10,000 tonnes of graphite concentrate annually to Qingdao Black Dragon Graphite for the next three years.  

The deal follows a similar agreement announced yesterday with another Chinese company, Qingdao Guangxing Electronic Materials.

Including an 11,000tpa deal with US firm Urbix Resources, Battery has now secured supply contracts for 60 per cent of the forecast annual production at the Montepuez project, which is expected make its first shipment in the March quarter next year.

Executive chairman David Flanagan said the Montepuez project continued to show promise.

“The Montepuez is rapidly gaining momentum, as demonstrated by the fact that we now have three binding agreements covering 60 per cent of our forecast annual production,” he said

“At the same time, we are in discussions to finalise the mining licence and we are rapidly advancing the Montepuez project as part of our strategy to be in production by December 2018 and complete our first shipment in the March quarter of 2019.”

Shares in Battery were unchanged at 6.9 cents each at 1pm AEDT.