Chinese business group Shenzhen Qianhai Zhongjin is expected to finance more than one graphite exploration operation by Australia’s Triton Minerals in northern Mozambique. The news was given by the mining company in a statement sent to online news portal Macauhub, in Maputo.

According to the statement, Shenzhen Qianhai Zhongjin has already signed a letter of intent to provide US$200 million to Triton Minerals for development of a mining project in Monte Nicanda, Mozambique. Now the Chinese group is studying the possibility of extending the preliminary agreement to another concession granted to the Australian firm in Ancuabe, also in the northern province of Cabo Delgado.

According to the press release, the decision follows contacts between Shenzhen Qianhai Zhongjin and two Chinese ministries. It led the Chinese group to consider that the assets of Triton Minerals in Mozambique might be of strategic value for China.

Triton Minerals said its Chinese partner requested a six-month extension of the letter of intent in order to assess the possibility of integrating the Ancuabe concession in the pre-agreement. The initial provisions of the latter remain unchanged. The Australian mining company believes that the period requested by the Chinese group would give it “enough time” to conduct “initial drilling and further testing, as well as obtaining metallurgical results for the Ancuabe graphite project”.

The initial agreement, according to Macauhub, provides for a direct investment of US$100 million by Shenzhen Qianhai Zhongjin in Triton Minerals. The remaining US$100 million would be via a loan.