Triton Minerals has signed off on the development of the Ancuabe graphite project, located 45km from the port of Pemba in Mozambique.
The construction is expected to begin in the second half of this year, while the company targets first graphite production in the second half of next year.
Ancuabe is estimated to produce around 60,000 tonnes per annum of graphite concentrate over a period of 27 years.
The final investment decision (FID) was taken on the basis of a positive definitive feasibility study (DFS) in December last year.
The company’s board also approved the development in view of completion of commercialisation activity earlier this year.
Triton Minerals managing director Peter Canterbury said: “The development of Ancuabe will deliver substantial benefits for government, stakeholders and communities in northern Mozambique.
“As outlined in the DFS, Ancuabe is forecast to deliver strong economics returns for Triton , and we are excited to continue to de-risk and deliver value for Shareholders as we progress to first production.
“We are seeing continued strong demand and pricing for the high purity, large flake, graphite products that will be produced at Ancuabe.”
The company hopes to secure investment capital for the construction of Ancuabe. It completed Front End Engineering Design (FEED) works, and pilot plant and environmental studies at the project.
Additionally, Triton entered into off-take agreements for up to 50% of annual production from the graphite mine.
The project has also received preliminary environmental approval and the company has submitted final environmental applications.