Magnis Resources Limited (ASX:MNS) has signed a Sales Agreement for the supply of flake graphite with European trader the World Group.
Under the agreement with World Group subsidiary World Plastik ve Petrokimya Sanayi ve Ticaret, Magnis will supply 25,000 tonnes per annum of flake graphite consisting of 15,000 tonnes per annum of Super Jumbo (+500 microns) at 97-99%TGC purity and 10,000 tonnes per annum of Jumbo (+300 microns) at a purity of 97.5% – 99.5%TGC.
Magnis can source the graphite from its Nachu project in south east Tanzania, as well as from other mines that produce graphite based on the above specifications. Pricing is fixed over the initial 3-year term and is commercial in confidence with first delivery expected in 2019.
Magnis’ Chairman Frank Poullas said this is one of the very few sales agreements in the marketplace with fixed pricing.
“It highlights the substantial demand that exists for high purity super jumbo and jumbo flake. The agreement has the optionality to source product from our Nachu project, as well as from other graphite mines that can deliver Super Jumbo and Jumbo flake graphite.”
World Group Director Murat Turel his company is looking forward to a long-term relationship with Magnis.
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World Group is a major player in the field of Energy, International Commodity Trade, E.P.C, financing solutions and infrastructure projects. It has headquarters in Istanbul with finance offices in Geneva as well as representative offices in the regions of the Middle East and North African, Commonwealth Independent States and Asia.
The majority of its business activity is physical trading of oil, gas, petrochemical and polymer Products.
In addition to trading of commodities through its fully owned and stake holding subsidiary companies, World Group is also a developer, investor and co-owner of power plants, energy and infrastructure projects and oil and gas product storage terminals.