ASX-listed Syrah Resources has executed a binding agreement with Asia-focused trading company Gredmann for sales from its Balama graphite operation into China.
As per the agreement, Syrah Resources’ Balama graphite operation in Mozambique will supply 9 000 tpm of fines natural graphite across a range of fixed carbon grades – commencing from June 2019 until December 2021 – for a total of 279 000 t (108 000 tpa pro rata).
Syrah Resources says that this new agreement provides more attractive payment terms for than its previous sales contracts.
Gredmann, which has a well-established Chinese sales network across more than 200 industrial products, chemicals and battery materials, will now be Syrah’s preferred trader of standard fines products in China for the term of the agreement, with direct sales continuing to certain end users.
“We are pleased to have entered into this long-term large volume contract with Gredmann,” says Syrah Resources MD & CEO Shaun Verner.
“Syrah sees Gredmann’s extensive experience and strong presence in China as an excellent platform through which to increase sales volumes and further demonstrate consistency and reliability of supply to this high growth market.
“Syrah and Gredmann share an aligned approach to customer and market development, and we look forward to a positive relationship,” Verner adds.
Concurrent with the commencement of this agreement, Syrah Resources advises of the amendment of the previously advised sales agreement with Qingdao Langruite Graphite Co. to reflect the sale of coarse flake products only.