Australian miner Syrah Resources believes that the graphite deposit within its Balama project, in Mozambique, is bigger than the rest of the world’s entire reserves of the mineral. The Balama orebody is calculated at 1.15-bil- lion tons, with an average grade of 10.2% of total graphic carbon (TGC) – equivalent to 117-million contained tons of graphite. The US Geological Survey estimated the rest of the world’s graphite reserves in 2012 at 77-million tons.

Balama is located in the Namuno district of Mozambique’s northernmost province, Cabo Delgado, and the prospecting licence covers 106 km2. The project is some 40 km west of the regional town of Montepuez and about 240 km west of the port of Pemba. The project area is also prospective for vanadium, and the company refers to Balama as a graphite and vanadium project, but is currently fast-tracking the development of the graphite operation, which is expected to be in production by 2015.

The graphite deposit is composed of a ridge and three small hills with graphitic schists, a significant proportion of which appears to be coarse (that is, large) flakes – preferred in the market – and, include high-grade outcrops. Large areas of the property have yet to be explored.

High-Grade Zones The company has divided the property into two sections, Balama East and Balama West, which include three high-grade zones. Balama East has the very high grade Mepiche zone and Balama West the high-grade Ativa and Mualia zones. These three zones together contain inferred resources of 306-million tons at an average grade of 16.1% TGC. The Ativa zone, which will be the first to be mined, has an inferred resource of 21-million tons, grading at 20.8% TGC.

Syrah reported in a recent update that the graphite from Balama is “exceptionally high quality” and that a simple flotation process would produce a concentrate containing more than 97% carbon. “It has very low sulphur content (0.008%) and is thus expected to be in high demand for steel applications which require a low sulphur content.” In addition, the company “expects that Balama could be the lowest cost producer of graphite in the world (including China)”. “This is mainly due to the superior qualities of the deposit such as very high grade, soft and thick ore outcropping at surface . . . as well as low costs in Mozambique.

“Balama currently has more than enough graphite to supply the world for well over 100 years, assuming it supplied even 100% of global demand,” stated the company. “Initial production will be from the high- grade areas . . . These high-grade zones are expected to supply enough graphite for several decades of global demand.” Syrah has stated that it is confident that it will sell 220 000 t of the mineral during 2015 – the first production year. It is currently talking to 25 potential customers, whose annual requirements range from 5 000 t to 50 000 t. Some of these discussions have been under way for some nine months. A number of nondisclosure agreements have been signed.

Currently, about 77% of the world’s natural graphite is supplied by miners in China, mostly operating in Shangdong province in north-east China or Heliongjiang province (the country’s most north-easterly province). Syrah stated that the Shangdong mines are low grade and that, while the Heliongjiang mines have good grades, their operation can be hampered by the severe cold weather that is experienced in winter.

Regarding Balama, the district is currently being connected to Mozambique’s national electrical grid and the national electricity utility has offered to establish a transmission line to the mining project. The national water authority has confirmed that there is sufficient capacity in the Chipembe dam, which is only about 10 km from the Balama property, to supply the mine and its plant. A good tarred road runs from Montepuez to Pemba, and this road should be extended to Balama by the end of this year. This road runs close to the property and the company plans to transport the graphite by truck to Pemba for export.