Battery signs offtake deal

Perth-based Battery Minerals has signed an offtake deal for the supply of graphite concentrate at its Montepuez project in Mozambique to a private Chinese company.

Under the agreement, Battery will supply 10,000 tonnes of the product annually for the next three years to Qingdao Guangxing Electronic Materials.

The deal follows an offtake agreement for up to 11,000tpa with US-based Urbix Resources, which was signed last month.

Battery now has about 40 per cent of its forecast annual production covered by offtake agreements, with first shipment expected in the March quarter next year.

Battery executive chairman David Flanagan said the deal was testament to the quality product.

“The agreement shows Battery Minerals is rapidly emerging as a significant global graphite producer which will enjoy low capital and operating costs and strong cashflows,” he said.

“We have tailored the Montepuez project so that it is extremely bankable, it generates a product which meets the needs of battery manufacturers, delivers extensive benefits to the local community and creates strong returns for shareholders.

“With two binding offtake agreements now signed, we are more confident than ever that we will achieve all these objectives.”