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RPT-ThyssenKrupp seals major graphite deal with Kibaran

Published 25/08/2015, 08:15 am
RPT-ThyssenKrupp seals major graphite deal with Kibaran
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(Repeats story published late Monday; no changes to text)

FRANKFURT, Aug 24 (Reuters) - German industrial group ThyssenKrupp TKAG.DE has agreed to buy 50 percent of the planned output of Kibaran Resources' KNL.AX proposed Epanko Graphite Project mine in Tanzania for 10 years.

ThyssenKrupp said on Monday it would buy 20,000 tonnes of graphite per year from the Australian graphite miner for the European, Russian and Korean markets, with an option to extend the agreement for a further five years.

Kibaran said on July 15 it had been granted an initial 10-year mining licence for the project, making it the first new graphite producer in Tanzania in 20 years. The news lifted its shares more than 10 percent.

On Friday, Kibaran announced a trading halt pending an announcement regarding what it called a "material offtake" for the project. ID:nWNBS018RY

Graphite is an important component in lithium iron batteries for smartphones, tablets and electric cars, and is also used in refractory compounds to build furnaces, incinerators or reactors capable of withstanding extreme heat.

ThyssenKrupp said the deal would complement its mineral unit's portfolio and enable it to expand its activities in the refractory industry in Europe, Russia and Korea.

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