Under the terms of the agreement, EGT will procure 10,000 tons of graphite concentrate per year from Kibaran, for an initial period of five years.
The agreement involves option for EGT to renew for a further five years, on a market based pricing mechanism and also enables Kibaran to jointly market and sell graphite with the security of an overriding off-take guarantee from the EGT.
Kibaran executive director Andrew Spinks said Kibaran is the first ASX-listed company to secure a binding off-take agreement for graphite sales and also the first company globally to sign a binding agreement for graphite sales in the sophisticated European market.
"This is a major milestone for Kibaran in our strategy of becoming a major graphite producer in Tanzania," Spinks added.
Additionally, the accord provides independent endorsement of the quality and commercial appeal of the large flake graphite identified at Kibaran’s Epanko graphite deposit.
"The exposure to the European market through this binding off-take agreement allows for Kibaran’s longer-term participation in the downstream graphite processing and value adding phases, as well as providing exposure to the high-end, high-value technology sector."
