Tanzania’s Volt Resources has signed a graphite sales agreement with Chinese distributor Qingdao Tianshengda Graphite to the tune of 9,000 tpa. The flake graphite development company is currently in the 1st stage of the Bunyu graphite project. Tianshengda is an integrated graphite processor and distributor across China and internationally.
Based in Laiki City, Shangdong Province, Tianshengda has a proven substantial annual capacity to further process graphite. This is through the production of value-added products including expandable graphite, flake graphite and powder. It is also inclusive of the supply of graphite to the lithium-ion battery market.
The agreement covers 9,000 tpa of Volt Resources’ Bunyu graphite product for five years, with an option for a further five-year term subject to mutual agreement. It will incorporate the size ranges of products to be produced in both the Stage 1 development and the planned expansion to Stage 2 at Bunyu.
However, the agreement is subject to confirmation by Volt Graphite Tanzania of the completion of the construction and commissioning of the Stage 1 Project for mine development. It is also conditioned upon completion of the processing plant for the treatment of sufficient ore from the project.
According to media reports, the selling price under the agreement will be in USD and CIF Qingdao Port, China. This will be determined by the prevailing market price for flake graphite products, adjusted for mesh size and TGC%, and agreed prior to the commencement of each contract half year.
Volt Resources’ CEO, Trevor Mattews said that this second binding off-take agreement is a strong validation of the confidence in Volt Resources’ Bunyu Graphite project. He further added that they are also conducting talks with additional parties in respect to further off-take opportunities.