Who is Traxys?
Traxys is a physical commodity trader and merchant. Based in Luxembourg they provides financial and logistical solutions for the mining and energy sector. They are part of The Carlyle Group, who hold US$293 billion in assets.
In 2019, Traxys joined forces with Pallinghurst to set up a joint venture with the objective to capitalise on the strong growth in demand for responsibly sourced battery materials. These include natural graphite, nickel, cobalt and other strategic materials critical for the growing and demanding lithium-ion battery manufacturers.
An exciting binding offtake agreement
The recently announced offtake agreement between Magnis and Traxys is testament to the international interest that the Nachu graphite project in Tanzania is creating. Commenting on this agreement, Kevin Smith, Managing Director of Traxys had this to say:
“We have been keenly interested in the high purity graphite produced from Nachu for several years. There is a huge demand from lithium-ion battery producers for all battery materials including graphite and being able to produce a battery grade anode product via mechanical processes only is a very unique feature of Nachu Graphite. We are excited to be partnering with Magnis on this important project”.
The binding offtake agreement set in place entails future delivery and sale of high-quality, high purity natural flake graphite from the Nachu Graphite Project located in South-East Tanzania. Magnis wholly owns this project.
This new agreement allows for the delivery by Magnis of natural graphite concentrate for a 6-year period starting in late 2024. Pricing of graphite concentrate to be delivered by Magnis under the Offtake Agreement is based on market prices of graphite concentrate at the time of delivery.
• 50,000 tonnes of Product (with varying specifications) within the first 12 months of the Commencement Date; and
• 110,000 tonnes of Product (with varying specifications) in each of the following 5 delivery years.
Additionally, Magnis says this will enable the construction of their plant in Nachu to commence prior to the end of Q3 2022.
Magnis Chairman Frank Poullas had this to say:
“We are really excited to have signed the binding offtake with a group of the calibre of Traxys which is a supplier of materials to many industries including lithium-ion battery manufacturers. Today’s announcement follows months of providing flake graphite samples from Nachu and is a major step in securing funding for Magnis’ Nachu Graphite Project.”