Syrah secures seven-year Balama offtake with NextSource
Australian graphite producer Syrah Resources has signed a multi-year binding conditional offtake agreement with Canada’s NextSource Materials for the supply of natural graphite fines from its Balama operation in Mozambique.
The agreement, announced on Monday, provides for the supply of at least about 34 000 t, and up to about 68 000 t, of graphite fines over a seven-year term starting no earlier than June 1, subject to certain conditions. The product will be delivered to Abu Dhabi in the United Arab Emirates.
Syrah said in a statement that the deal reinforced the strategic importance of its Balama operations as a large-scale supplier of high-quality natural graphite outside China, particularly to the emerging ex-China anode and battery supply chain.
Pricing under the agreement will be determined quarterly as a premium to an independently reported price index for natural graphite fines, with adjustments for product grade and shipping costs. The material to be supplied is specified as -100 mesh at 94% carbon or above.
The offtake is conditional on the start of commercial production at NextSource’s proposed anode material facility in Abu Dhabi and on approvals from NextSource and its downstream customers to use Balama graphite. If the conditions are not satisfied or waived by December 31, 2026, Syrah may terminate the agreement, while NextSource has termination rights if they are not met by December 31, 2027.
Toronto-based NextSource, which owns the Molo graphite mine in Madagascar, is advancing plans for a large-scale anode material facility in Abu Dhabi to supply a Japanese downstream customer. The company has secured a property and existing building in the emirate, executed an offtake agreement with its Japanese customer and finalised term sheets for strategic funding as it moves towards a final investment decision on initial commercial capacity.
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