Valence seals six new graphite sales contracts

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Valence Industries has signed 6 new sales contracts for the supply of more than 8,000 tonnes of flake graphite.

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The contracts are consistent with Valence Industries’ current and forward production profile and in line with its sales strategy to manufacture and sell graphite to the required specifications of customers.

The sale contracts are for graphite concentrate across all sizes and purities and intended for applications ranging from heavy industry (refractories, foundries and lubricants) through to advanced technologies (batteries and electronics) and even for bio-medical applications.

The company said in an ASX announcement that the sales support its strong growth path set for the next 18 months, which is to deliver increased volumes and value-added advanced manufacturing.

It also said that full commissioning of the Uley Phase I plant is scheduled to be completed by the September quarter, with first export shipments of graphite expected to commence later this month.

The first quarter of 2015 saw Valence Industries qualify 9 new customers and is currently waiting the feedback of further 6 customers, which have already received production samples of its flake graphite and are completing their internal qualification process.

“Customers for flake graphite require samples from actual production facilities in order to qualify the specific grade and quality of graphite for their own production requirements. Test samples from lab scale or test scale plants are not sufficient,” it says in the announcement.

“Valence Industries continues to receive positive feedback from customers in relation to the quality of the Company’s graphite product and importantly, the low level of impurities. These 9 new customers will receive flake graphite concentrate from production during 2015 and are also positioned to receive flake graphite from Valence Industries’ increased output in 2016.”