The amended agreement includes a commitment by DNI to annually supply up to 24,000 tonnes of flake graphite from its projects in Madagascar.
Peninsula’s managing director Jon Dugdale said, “This amended flake-graphite supply agreement with DNI will assist the company to secure offtake agreements with Korean flake-graphite end-users.
“It will complement the company’s flake-graphite resource delineation and development plans in Korea.
“Peninsula has established strong relationships with Korean end-users looking to secure flake-graphite supply for lithium-ion battery anode production as well as for cutting-edge new technologies such as expandable graphite, a non-flammable building cladding/insulation product.”
Amended supply arrangements
The amended supply agreement includes DNI supplying Korea Graphite with minimum flake graphite production as follows:
The agreement is subject to Korea Graphite finalising one or more binding offtake agreements with Korean end users by July 1, 2019.
Peninsula and DNI are discussing options to cooperate with respect to fast-tracking the development of DNI’s large-flake graphite projects in Madagascar.
Dugdale, who is also a director of Korea Graphite, said: “Madagascar has been producing high-purity, large-flake graphite for over 100 years and DNI’s large-flake graphite deposits are saprolite hosted and close to port, thus potentially low operating cost.”
DNI has two permitted deposits
DNI has two permitted, saprolite-hosted graphite deposits in Madagascar, 50 kilometres from the country’s main seaport of Toamasina.
The deposits, Vohitsara and Marofody, are less than 2-kilometres from the paved national highway.
DNI intends to develop the Vohitsara project, should the economic viability and technical feasibility be established.
Korea Graphite has tenements and tenement applications in South Korea with fine to large and jumbo flake graphite identified.
Peninsula is progressing these and other projects to JORC-compliant resource definition with the objective of defining resources for scoping and feasibility studies.
This work has the potential to develop mining and flake graphite concentrate production for spherical graphite for lithium-ion battery applications and/or expandable graphite and other markets in Korea.
Peninsula is also engaged in advanced discussions with other flake-graphite end-users in Korea regarding feed for Li-ion battery anode manufacture and potentially large-flake graphite for refractories in the steel making industry.