PERTH (miningweekly.com) – Graphite developer Triton Minerals has signed a memorandum of understanding (MoU) with China’s Sinoma Overseas Development Company providing terms for offtake, engineering, procurement and construction (EPC) services, debt financing and project investment at the Ancuabe project, in Mozambique.
Triton MD Peter Canterbury told shareholders on Wednesday that the MoU was a transformational event for Triton.
“Securing the MoU with Sinoma, an ideal project partner for Triton given its deep expertise in the Chinese building materials sector, and its financial strength and project execution capability, underscores the quality of the Ancuabe project and increasing demand for expandable graphite.”
A recent scoping study into the project revealed that Ancuabe could produce about 60 000 t/y of graphite over a 17-year mine life. The project is likely to require a capital investment of $83-million, with capital costs estimated at $601/t over the life of the mine.
The MoU provided the two companies with a framework to negotiate formal terms for an offtake and EPC contract, as well as for the financing of the Ancuabe project, consistent with Triton’s strategy of rapidly developing the project.