"(Pricing) will be determined by the prevailing market price for flake graphite products, adjusted for mesh size and TGC percent, and agreed prior to the commencement of each contract half year," Volt said.

Volt favours this structure because it claims it will provide it with "exposure to the anticipated growing demand and stronger prices for quality flake graphite".

The deal with the Chinese firm - described as an integrated graphite processor and distributor across China and internationally - adds to the 1000tpa agreed-to with US based graphene company Nano Graphene Inc.

Volt reported feasibility results for Bunyu earlier this week and said at that time it was completing the final binding offtake agreements for "substantially all of Stage 1 annual production" - 23,700tpa.

Volt is also working on finalising a US$40 million bond issue in Tanzania to fund the $31.8 million of initial capital needed to build the project.

Shares in Volt closed Wednesday at A1.9c capitalising the company at $26 million.