Syrah Resources has entered into a binding conditional offtake agreement with NextSource Materials. The agreement concerns the supply of natural graphite fines from Syrah’s Balama operation located in Mozambique. Syrah Resources is an industrial minerals and technology company. It is involved in the production of natural graphite and the development of active anode material.
The seven-year deal is set to commence no earlier than June 1. The agreement covers aggregate volumes ranging from approximately 34,000 to 68,000 tonnes. Pricing will be determined quarterly, set at a premium to an independent graphite fines index, with adjustments made for grade and shipping costs.
Supply under the offtake agreement is conditional. It hinges on the commencement of commercial production at NextSource’s planned anode material facility in Abu Dhabi. It also requires downstream customer approval for the utilisation of Balama graphite in their processes.
Syrah Resources stated that this agreement reinforces Balama’s position as a significant supplier of high-quality natural graphite from outside of China. The company also highlighted the operation’s established track record within battery anode markets.
