The signing of the memorandum of understanding is a key milestone in the development of the project located in Tanzania.
It is also a significant development for ASX-listed Magnis Resources as it positions the company alongside a highly-regarded group and world leader in the construction and operating of nuclear reactors. Flake graphite is a key material used in nuclear reactors.
[quote]Chairman of Magnis Resources Frank Poullas commented: “Today’s announcement is a key step towards a binding offtake agreement for our super jumbo and jumbo products and potential financing by the world’s largest nuclear power technology company.”
“ROSATOM is the world leader in the development and construction of nuclear reactors with over $130 billion worth of orders in place. Larger flake graphite, which our Nachu project will produce, is a key material used in these nuclear reactors and it is highly sought-after. Our project is therefore strategically important to ROSATOM over the longer term.”
Poullas added that the Magnis Resources board looks forward to a long and fruitful relationship with ROSATOM and its focus is now on moving the MOU into a binding offtake agreement.
President of ROSATOM, Alexander Merten, added: “We are pleased to enter into this agreement with Magnis Resources. ROSATOM is known for the quality of its products and we are seeking to develop long-term partnerships with the highest quality graphite producers in the world.
“Under the MOU, both organisations will work together towards a binding offtake agreement once further negotiations take place and certain milestones are met.”
Magnis Resources said that there is interest in the super jumbo (+500 microns) and jumbo (+300 microns) flake graphite sizes. The larger flake sizes are currently being consumed by several of the business divisions of ROSATOM, including nuclear power generation, aerospace and creating composites.