Bass Metals signs MoU for Graphmada project in Madagascar
Australian graphite developer Bass Metals has signed a sales and purchase memorandum of understanding (MoU) with regard to graphite concentrate production from its Graphmada project in Madagascar with Possehl Erzkontor.
Under the MoU, Possehl Erzkontor will purchase graphite concentrate in the range of 3,000mtpa from Bass Metals for a period of three years. Concentrates from Graphmada will be sold into the refractories, foundries and crucible markets throughout Europe.
Bass Metals CEO Tim McManus said: “Our partnering with a group that has been in operation for more than 100 years and generates annual revenues of greater than €350m is an important strategic development for Bass."
"Their customer base includes companies from the refractory industry, metallurgy, and foundries, cement and construction materials, as well as chemicals and plastics processing.
"This partnership will benefit the company through distributing our premium concentrates to end-users in Europe and establishing Graphmada concentrate as a highly valued product in end-markets."
Currently, Bass is engaged in revamping and incorporating process changes at the project, aimed at re-commissioning this year.
The company is undertaking Stage 1, which includes the establishment of 6,000t per annum production.
It is expected to upgrade to Stage 2, expanding production of graphite concentrate to more than 20,000t per annum in 2019.
According to Bass, all production ceased at process and drying plants to allow civil works and equipment installation.
The company further noted that 100t of the 332t of graphite concentrates in stock at Graphmada graphite mine have been sold this quarter.