Africa’s largest graphite miner, Syrah Resources, has completed the purchase of its battery anode material, or BAM, plant site in Vidalia, Louisiana.
The plant sees Syrah Resources step into the downstream beneficiation of graphite as inert BAM is a precursor product for lithium-ion batteries.
During the due diligence period Syrah also finalised the major terms for electricity, natural gas and water utility agreements. The combination of the site and utility agreement terms provides a strong competitive base for the company’s BAM development.
Mobilisation of long lead equipment for the initial 5 000 tpa graphite milling and shaping capacity to the Vidalia site will commence immediately. Further major capital expenditure will be determined in conjunction with the Balama cash flow profile.
Shaun Verner, MD and CEO says:
“The completion of the BAM site purchase is a significant milestone for the company. The site provides a solid base to commence the commercialisation of our BAM strategy.
"Combined with our BAM product development activities and ongoing engagement with potential customers, initial qualification products will help inform the potential of a larger commercial scale facility, and are a critical strategic step towards market entry."
Syrah produced first graphite from its Balama project in Mozambique in November 2017. The mine then transitioned to operations with sales and shipments to a global customer base including the battery anode producers, from the start of 2018..