Traxys will market graphite products from Mineral Commodities

Mineral Commodities has signed a memorandum of understanding for the sale and marketing of graphitic anodes with global commodity trading and logistics company Traxys. The agreement will allow Traxys to market Mineral Commodities’ downstream graphitic anodes produced from concentrate from its Skaland mine in Norway and the company’s Munglinup development project in Washington State.

The agreement, which has an initial term of three years, aims to support the qualification of graphite anodes and to secure subsequent off-take agreements.

Mineral Commodities says the move is a key ingredient in achieving the “five-year strategic plan” outlined in late April, which will see the company focus on delivering battery anodes in Europe, with a secondary focus on finished garnet products. and ilmenite from South Africa. .

This partnership will expedite the qualification of graphite anodes and subsequent offtake agreements…and support final investment decisions for the development of Munglinup, the targeted expansion of Skaland and the proposed active anode materials plant in Norway.

The news comes two days after it was announced that it had signed another memorandum of understanding with Mitsubishi Chemical Corporation.

The agreement reached should accelerate its integration into the European anode material supply chain ahead of schedule through the construction and operation of an anode plant in Norway to process graphite materials . It will see Mineral Commodities toll graphite supplied by – and then returned to – Mitsubishi.

In terms of the long-term strategic plan, Mineral Commodities is targeting two final investment decisions by the second quarter of 2023 in addition to providing downstream graphite anode product qualification.

The first decision relates to the company’s plan to expand capacity at its Skaland operation beyond its current limit of 16,000 tonnes per year and will be supported by off-take agreements.

While the second intends to significantly increase its graphite concentrate production capacity via its Munglinup development project. The 7.99 million tonne resource at Munglinup is about half the grade of Skaland, but is significantly larger and represents a significant opportunity for the company to strengthen operations and achieve economies of scale.

The company holds a significant 9.83 Mt at 14.3% total graphitic carbon, containing 1.4 Mt of graphite at its Munglinup and Skaland projects.

Mineral Commodities hails Skaland as the highest quality operating flake graphite mine in the world with 1.84 Mt and an extraordinary graphitic carbon content of 23.6%.

Interestingly, there is more graphite than lithium in an electric vehicle battery. With the electric vehicle set to play a major role in global decarbonization, it’s easy to see why the International Energy Agency estimates that demand for graphite could increase 20-25 times by 2040.

The US Geological Survey sees China as the leader in graphite production and says the eastern superpower’s rapidly growing domestic graphite market could restrict future exports.

The authoritative body says China produced around 82% of the world’s graphite in 2021, followed by Brazil with a meager 6.8%.

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