HomeBattery metalsTirupati to acquire strategic graphite projects

Tirupati to acquire strategic graphite projects

Tirupati Graphite has entered into a binding acquisition agreement for the acquisition of the entire issued share capital of Suni Resources SA.

Suni Resources holds the Mozambique portfolio of graphite assets of Battery Minerals, which includes the construction initiated Montepuez Graphite Project and the advanced feasibility study stage Balama Central Graphite Project.

The Acquisition includes all associated assets, infrastructure, permits, licenses and intellectual property on both projects for a total consideration of AU$12.5 million in a cash and shares deal. The Acquisition is subject, amongst other things, to the mandatory shareholder approval of Battery Minerals and approval of the transaction by the Ministry of Mineral Resources and Energy in Mozambique.

Mozambique is home to commercially significant deposits of graphite and a key determinant of mining opportunities in Mozambique is the global energy transition, which has driven demand for certain minerals needed to fuel electric vehicles and vehicles that rely on hydrogen fuel cells.

Mozambique is well-positioned to take advantage of this market boom, with mining operations already expanding across Cabo Delgado where the projects are located as well as Gaza, Manica, Maputo, Nampula, Niassa, Tete and Zambezia.


Shishir Poddar, CEO of Tirupati Graphite, said:

“With fast evolving opportunities as the electrification of mobility has taken off, and the world is starting its scramble for supplies of critical raw materials of which graphite is one, this is nothing short of a game-changing acquisition for us to build our arsenal and seize every opportunity coming our way to becoming a global leader in flake graphite.

“Strategically, the Montepuez and Balama Central deposits are world class and will add 152 million metric tonnes at 8.5% TGC of resources to our existing c.25 million tonnes of resources in Madagascar, a c.6X addition on in ground resource tonnage with a c.12X addition on the contained graphite.

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“Every forecast of flake graphite market we have come across rate the market size exceeding 5 Mtpa of new demand by 2030, which dwarfs our current buildout to 84,000 tpa capacity planned at our Madagascan projects. With this acquisition, we take significant leap forward our mission of becoming a leader to meet the global needs for this critical material and contributing to the green aspirations of the world.

“A recent UN report depicts the threat we all face with climate risks and every effort towards its mitigation is an opportunity. We will continue to be pragmatic in our approach to developing additional capacities which are well planned and aligned with the graphite markets.

“Utilising the strengths and advantages of these projects, which are highly complementary to our resource requirements, will help us to mitigate the country risks through diversification whilst further bolstering the foundations which will enable us to capitalise on every opportunity to grow beyond our medium-term development plans (MTDP).

“With much of the consideration being satisfied in equity, we will welcome our new shareholders from Battery Minerals. Continuing with the construction of the Montepuez Project will be a key focus and with our expertise and history in working similar deposits over decades, we are confident it will result in even better economics for Montepuez and Balama Central, which we have already started working on and will keep the markets updated as we progress.”

David Flanagan, Executive Chairman of Battery Minerals said:

“Shishir and his team at Tirupati have developed and demonstrated world leading graphite industry capability over the last 40 years.  They are uniquely positioned with existing operations and downstream processing facilities that are globally competitive making them an excellent partner to commence these projects in the shortest possible time for the greatest benefit of the respective companies, shareholders and the people of Mozambique. “