Syrah Resources Ltd (ASX:SYR) has signed new sales and marketing contracts for natural graphite from its Balama operations in Mozambique.
The company has formalised agreements with three companies in China, Germany and India.
It is now supplying product from Balama into the battery and expandable graphite sectors.
Syrah produced its first saleable flake graphite product in November 2017 and operations are being ramped up.
Expandable graphite contract
The company has signed a spot sales agreement with Yichang Xincheng Graphite Co Ltd, a leading global producer of specialty expandable graphite.
Syrah’s first shipment to Yichang Xincheng is imminent and if this proves successful, a long-term contract will be agreed.
The expandable graphite market is a key market for the large and jumbo flake sizes produced at Balama.
It also has a high growth potential and is one of the highest value-added uses for natural graphite.
Agreement with German producer
Another agreement has been signed with CS Additive GmbH & Co, a German producer of specialty carbon and sulphur products.
This is for industrial purposes and involves a minimum of 6,000 tonnes in 2018 with volume increasing to 2020.
Indian agency appointment
Syrah has also confirmed an agency appointment with Magus Marketing Pvt Ltd for distribution to the Indian subcontinent.
First orders have been received and are scheduled for shipment.
Balama is expected to be a leading global producer of high purity graphite and production is targeting supply to traditional industrial graphite markets as well as emerging technology markets.
Syrah’s production guidance for 2018 is 160,000 to 180,000 tonnes.
The company is also developing a downstream battery anode material plant in Louisiana, U.S.