Australia-based Triton Minerals said that its board has given its nod to move ahead with the development of the A$99m ($76.04m) Ancuabe Graphite Project in Mozambique.
Image: Early works being carried out at the Ancuabe Graphite Project. Photo: courtesy of Triton Minerals Ltd.
The ASX-listed resources company said that construction on the project is anticipated to begin in the second half of this year. However, it will be based on final approvals and financing, said the mining company.
Should everything go as per plan, then the Ancuabe Graphite Project is estimated to see its first graphite production in the second half of next year. Production from the new graphite project is expected to serve the global graphite and lithium-ion battery markets.
The graphite mine is estimated to have an annual production of nearly 60,000 tonnes per annum of graphite concentrate, over 27 years of its lifetime.
Triton Minerals said that the final investment decision (FID) on the graphite development project comes following the positive definitive feasibility study in last December.
It also follows the development and commercialization activity concluded this year, which has confirmed the board’s confidence in the quality of the project and estimated economics.
Triton managing director Peter Canterbury said: “The development of Ancuabe will deliver substantial benefits for government, stakeholders and communities in northern Mozambique.
“The substantial work undertaken by Triton during 2018 has confirmed the Board’s confidence in Ancuabe and enabled the Board to make this development decision only 18 months from the discovery of the T16 deposit.”
Triton Minerals said that the Ancuabe Graphite Project is supported by binding off-take agreements for up to half of its annual production.
The company, which has also acquired a 100% economic stake in the project, has advanced engineering, procurement and construction (EPC) tenders.
It has also secured preliminary environmental approval and has submitted final environmental applications for the graphite project, located 45km from the Pemba port.
The company has started early works at the site, which include earthworks for developing a raw water dam that will be used for construction and operations of the project.