Syrah increases Balama graphite recovery

Australia-based graphite producer Syrah Resources is on track to meet its amended 2018 output target as it benefits from a production improvement plan at its Balama project in Mozambique.

Average graphite recovery rate was 74pc in November, up from 53pc in the July-September quarter and 54pc in the month of September.

The company expects to achieve its 2018 production target of 101,000-106,000t of graphite concentrate. Guidance was reduced to this level after fire damage to the primary classifier unit caused a five-week production shutdown between early October and early November.

High-grade consistency has been maintained as part of the improvement plan, with fixed carbon content above 95pc in November. It achieved targeted 98pc fixed carbon production in coarse flake graphite.

The firm is continuing to take action in the supply chain to reduce inventory levels, especially at the port of Nacala in northern Mozambique.

Syrah started graphite sales and shipments at the beginning of 2018. It is also developing a downstream battery anode plant in the US state of Louisiana.

It reached its first coarse flake graphite agreement with a Chinese customer in November, for 6,000t over 12 months. It also produced its first fixed carbon grade natural graphite and made a maiden sale to a Japanese customer.

Balama is one of the world's highest-grade natural graphite resource. Several other companies are developing graphite projects in Mozambique and Tanzania to take advantage of the lithium-ion battery boom.