The report said that the two parties will confirm the contract within the next few days. Given the global total annual production of graphite is only about 1.2 million tons, the importance of the contract is self-evident.
The Balama graphite mine, owned by Australia's Syrah Resources, produces about 220,000 tons per year. Due to the minerals, the company's market value has risen from A$10 million in 2011 to the current A$470 million. Syrah Resources is planning to begin producing the first batch of graphite in the first 15 months.
Chinalco is the world's third-largest aluminum producer, and the company is considering the use of graphite to replace petroleum coke and other forms of carbon to make anode carbon, which is an important step in the aluminum smelting process. Graphite can also be used in the steel industry. As the world's largest steel producer, China produces about 800 million tons of steel a year.
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