Reserves increase underpins Montepuez graphite mine

Perth-based Battery Minerals has increased ore reserves at its Montepuez graphite project in Mozambique, where it is aiming to produce around 50,000 t/yr of graphite concentrate.

Ore reserves have risen to 42.2mn t grading 9.3pc total graphitic carbon, with the estimated contained graphite rising by 10pc to 3.9mn t.

Mine life is estimated at around 50 years with average costs in the first 10 years of production at $361/t. This compares to a current graphite concentrate price of around $1,064/t.

The increased ore reserve confirms Montepuez's financial and technical strengths, Battery Minerals' managing director David Flanagan said. "We have a long mine life and ample scope to increase production beyond stage one," he said. "The remaining cost to bring Montepuez into production is just $39.5mn. We have the mining licence, environmental approvals, offtake agreements, a port allocation, a completed tailings dam and we have built a new mine village."

Montepuez is expected to generate around $30mn/yr in earnings before interest, tax, depreciation and amortisation, and before including any production expansion.

Battery Minerals is considering plans to increase output to around 100,000 t/yr, subject to approvals. It is also undertaking a scoping study on the Balama Central project in Mozambique, which may have capacity to produce around 50,000 t/yr.