Natural resources firm Flinders Resources has signed a new contract with a Chinese high purity graphite specialist.

Product from Flinders Woxna graphite facility in Sweden has already been shipped to China and detailed bench-scale test work is underway to improve the high-purity flowsheet developed for Woxna graphite in 2001.

The proposed work will evaluate all technical aspects of the purification process and define economic parameters.

The next phase of work will intend to complete the detailed design of the high-purity graphite flowsheet.

Flinders said the Woxna plant remains on a production-ready status and can be recommenced soon after viable economics return to the graphite market.

Flinders Resources president & CEO Blair Way said: "China is presently the leader in graphite purification technology, and is the primary supplier of high-purity natural flake graphite to the battery sector.

"By partnering with experts in the high purity field, Flinders gains a competitive edge for the timely transition into the high-purity market."

Flinders acquired the Woxna graphite mine via a business combination transaction in February 2012.