(MENAFN- ABN Newswire)
Valence Industries Limited (ASX:VXL) has signed multiple new Memoranda of Understanding (MOUs) for flake graphite sales in excess of 80000 tonnes over 2 or more years.
The MOU volumes cover more than 29000 tonnes annual production of graphite from Valence's flagship Uley Graphite facilities.
The MOUs with four customers provide Valence with committed contracts for delivery of significant quantities of flake graphite year on year and are for a defined "collar" price subject only to final product/grade qualifications.
The Company is pleased with the price levels obtained under the MOUs which are consistent with its expectations.
Diversification is Key for Success
With these MOUs Valence has achieved diversification across regions and industries through to differing types of customers.
This is consistent with the market engagement and market segmentation strategies pursued by the Company over the last 12 months. The MOUs deliver important customer industry and product diversification.
Sales Volumes & Phase II Expansion Program
The Phase I graphite manufacturing facilities owned by Valence have a designed capacity of 14000 tonnes of graphite production per year.
Production from Phase I is planned to commence in the current quarter once regulatory approvals are completed.
With MOUs now in place that significantly exceed the planned annual Phase I plant capacity Valence Industries has taken a further significant step forward in the feasibility assessment for its Phase II expansion of operations.
Phase II is to include a new open pit and an expanded plant capacity to add up to 50000 to 60000 tonnes of graphite to Valence Industries' annual production capacity.
To view figures please visit:
http://media.abnnewswire.net/media/en/docs/ASX-VXL-811426.pdf
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