EDITOR: | December 23rd, 2013 | 1 Comment

Syrah Resources Limited: Grant of Mining Licence

| December 23, 2013 | 1 Comment
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  • Islay

    The formal announcement of the grant of a Mining Licence to Syrah Resources, for the Balama deposit in Mozambique, hits the Go! button for the development of what is, by far, the largest graphite deposit on the planet. The Mining Licence also covers vanadium, and Balama is among the largest known vanadium orebodies (and probably the lowest production costs).

    What is particularly interesting is that so many activities have been done in parallel, including mains power, water, road and port access; mine site layout planning; and environmental studies. Most of the fleet required for mine site construction has been already purchased, and actual construction is scheduled to begin at the end of the wet season in April 2014.

    The most telling point that comes out of this is that Syrah have consistently achieved schedules for each of these activities – schedules announced more than a year ago, and which were derided by critics at the time as impossible. It’s also a record which is something of a rarity among small mining companies.

    That can only be read as evidence of tight management, and goes a long way towards generating confidence that Syrah will meet its ambitious targets for the marketing of its huge resource. It is clear that their intent is to go beyond the traditional graphite markets, and attack the much larger carbon market, for such things as graphite electrodes and aluminum anodes.

    With an initial planned production rate of 220,000 tonnes of graphite per year, commencing in the first half of 2015, the entry to that broader market may not be far away.

    December 25, 2013 - 1:05 AM

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