Valence Industries to sell Uley graphite in Europe

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Valence Industries has announced that it has signed a new Sales Agency Contract for the marketing and sales of specific flake graphite product lines from its Uley Graphite operations in SA into the European market.

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Valence said the agreement was the first Sales Agency Contract for the company, which will add to its capabilities and reach into the European market and help further expedite the already strong sales process.

Valence revealed that the contract is with a UK-based company which previously managed sales of Uley Graphite when it was in operation 25 years ago.

The agent, which Valence didn’t identify due to confidential terms, has forecast that it will sell between 22,000 tonnes and 25,000 tonnes of Uley Graphite each year over an initial three-year period, with options to extend.

According to the ASX Announcement by Valence, the contract commences in mid-2015 – in line with the production ramp up of the Uley Graphite operations – with pricing of sales expected to be consistent with Valence’s targeted average price of US$1,400 ( AU$1,800) per tonne.

“Graphite will be marketed for use in the energy and resources sector through to heavy industrial engineering under the company’s VXL StratGraff TM brand. These market segments in Europe represent strong growth sectors for Valence Industries,” reads the announcement.

“Valence Industries may consider other sales agency arrangements in other regions and for other graphite product lines and brands to add to the direct customer Sales Contracts and the Memoranda of Understanding already entered into by the Company.”