• Syrah signs seven-year graphite supply deal with NextSource

• 34,000-68,000 tonnes from Mozambique’s Balama mine

• Supply to feed planned UAE anode plant

Syrah Resources said on Monday, March 2, it signed a supply agreement with Canada’s NextSource Materials for its operations in Mozambique. The deal covers graphite shipments from the Balama mine.

The Mozambican site, operated by the Australian company, is the largest graphite mine in Africa, with a nominal capacity of 350,000 tonnes per year.

Under the agreement, NextSource has committed to purchase between 34,000 and 68,000 tonnes of graphite over seven years starting June 1. The material will supply a large-scale anode production plant the company plans to develop in the United Arab Emirates. Sale prices will be set quarterly by mutual agreement and adjusted for product quality and freight costs, Syrah said.

The deal comes as Balama operates below capacity due to weak global demand and subdued prices. In response to market conditions, Syrah has been running the mine in campaign mode, scaling output in line with demand and well below nominal capacity.

For NextSource, the agreement is intended to secure feedstock for its planned UAE plant, in addition to output from its Molo graphite mine in Madagascar. The agreement is conditional on the start of commercial production at the anode plant, which is currently in pre-development. NextSource expects to take a final investment decision soon to move into construction. The use of Balama graphite must also be approved by the future customers of the UAE facility.

Aurel Sèdjro Houenou