CAPITAL MARKETS

Battery inks MOUs

DAVID Flanagan’s African graphite venture, Battery Minerals, has inked two potentially critical agreements that could help it sell product from its Montepuez project in Mozambique by early 2019.

Haydn Black
Battery inks MOUs

Battery hopes to become the first ASX company to produce and sell spherical graphite, meaning multi-faceted agreements with Chinese integrated graphite company Qingdao Guangxing Electronic Materials (GEM) and Tokyo-listed Meiwa Corporation are vital as it pushes into the rapidly expanding battery market.

The privately-owned Chinese concern GEM is said to have expertise in mining, production, downstream processing and marketing of graphite, and is enhancing its existing ‘spheronisation’ and expandable graphite capability.

The Japanese trading organisation Meiwa is said to have extensive experience in the graphite market and the lithium-ion battery industry, which Flanagan said was complimentary to his company’s planned role as a supplier of battery materials.

Meiwa has already tested Battery’s flake concentrate and purified spherical graphite, and has indicated there is potential to develop a market for anode material products for li-Ion batteries and other end uses.

The memorandums of understanding are both non-binding and non-exclusive and could allow Battery to supply graphite products on commercial terms.

The scaled back US$42 million Montupuez stage 1 project is aiming to produce around 45,000-50,000 tonnes per annum of graphite concentrate.

A second operation at Balama is subject of a definitive feasibility study.

Battery shares were up 11% to A7c in trade this morning, valuing the company at $30 million. It had some $5 million in cash at June 30.

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