Mozambique 'Most Definitely Open for Business' for Australian Graphite Miners

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--Australian miners are gung-ho about the prospects of rich graphite deposits in Mozambique, where project developments will gather speed in 2014.

Syrah Resources (ASX:SYR) (Melbourne, Australia) announced it was granted a 25-year mining license for the Balama graphite and vanadium project in the northern Mozambican province of Cabo Delgado.

In a company statement, Syrah said it was confident the project would be hugely profitable. "The deposit is extraordinary in every measure. It is by far the largest graphite deposit in the world as well as being a very sizeable vanadium deposit. It has a large zone with extremely high grades of graphite and excellent grades of vanadium," it stated.

The company raised $35 million to finance the completion of the Balama project feasibility study, which is scheduled for the first quarter of 2014. Funds will also be used to pre-order equipment, with a long lead time for the mine. Construction is due to begin after the end of the rainy season in April 2014.

Syrah complimented the Mozambican government for the rapid processing and awarding of the license, which came five months after application. The company was also awarded water rights from Chipembe Dam shortly after applying. "These facts illustrate that Mozambique is most definitely open for business," Syrah said.

Another Australian miner, Triton Minerals (ASX:TON) (Perth, Australia), is developing the Balama north graphite project in Cabo Delgado. Triton said it was "extremely pleased and encouraged by the tremendous progress that has been achieved on the project in 2013."

"The outstanding exploration and drill results at both the Ncanda Hill and Cobra Plain prospects continue to support interpretation and belief that the Balama North project has the potential to host multiple world class high grade, large flake graphite deposits," Triton said. It expects to complete a resource definition and refined-scoping study for the Cobra Plain prospect by no later than mid-2014.

For related information, see November 21, 2013, article - Mozambique Graphite Project Could Point Syrah Resources to Massive Immediate Profit.

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