Thursday, March 31, 2016

Magnis Nears Graphite Sales Deals as Electric Car Demand Booms

(Bloomberg) -- Magnis Resources Ltd., developing a $269 million mine in Tanzania to produce graphite used in lithium-ion batteries, has held advanced discussions with customers to secure sales agreements ahead of finalizing funding for the project, the company said.

"Demand is growing immensely and people agree that lithium-ion batteries are taking off and they are the way of the future," Frank Poullas, chairman of Magnis, said in an interview in Perth on Thursday. The company has held talks with customers in North America, Europe and Asia, he said.

Nissan Motor Co. and Renault SA have said sales of battery-powered vehicles climbed to a record last year, while Volkswagen AG's Audi plans to start building its first purely electric sport utility vehicle in 2018. Tesla Motors Inc. is set to introduce its first mass-production electric car, the Model 3, Thursday.

The Nachu mine will produce 240,000 metric tons of graphite concentrate a year for 15 years from the second quarter of 2017. It will produce so-called jumbo and super-jumbo flakes which attract significant pricing premiums as they require less processing, according to Bell Potter Securities Ltd.

©2016 Bloomberg L.P.


Source: Magnis Nears Graphite Sales Deals as Electric Car Demand Booms

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