ASX-listed Magnis Resources has secured a sales agreement to supply flake graphite to World Plastik ve Petrokimya Sanayi ve Ticaret, a division of the World Group.The agreement signed is for 25 000 tons per annum (tpa) of flake graphite consisting of 15 000 tpa
of Super Jumbo (+500 microns) at 97-99% TGC purity and 10 000 tpa of Jumbo (+300 microns) at a purity of 97.5% - 99.5% TGC.
Under the agreement, Magnis can source the graphite from its Nachu project, as well as from other mines that produce graphite based on the above specifications.
Pricing is fixed over the initial three-year term and is commercial in confidence with first delivery expected in
Overall pricing exceeds the forecasts used in the Magnis Bankable Feasibility Study released through an
announcement to the ASX on 31 March 2016.
World Group is a major player in the field of energy, international commodity trade, EPC, financing solutions
and infrastructure projects.
It has headquarters in Istanbul with finance offices in Geneva as well as representative offices in the regions of the Middle East and North African, Commonwealth Independent States and Asia.
The majority of its business activity is physical trading of oil, gas, petrochemical and polymer products.
In addition to trading of commodities through its fully owned and stake holding subsidiary companies, World
Group is also a developer, investor and co-owner of power plants, energy and infrastructure projects and oil
and gas product storage terminals.
World group is a member of the Energy Council of Foreign Investors for The Republic of Turkey, a group
consisting of government officials, industry, and other stakeholders with a view to support the efforts of both
international and national market players for new endeavors in the developing Turkish energy market.
“We look forward to a long-term relationship with Magnis as we work together to meet our customer’s needs,” says World Group director, Murat Turel.
“Today’s announcement is significant for the company and is one of the very few sales agreements in the marketplace with fixed pricing," comments Magnis Resources' chairman, Frank Poullas.
"It highlights the substantial demand that exists for high purity super jumbo and jumbo flake.
"The agreement has the optionality to source product from our Nachu project, as well as from other graphite mines that can deliver Super Jumbo and Jumbo flake graphite.”
Feature image credit: Wikimedia