International Interest for a Growing Graphite Mining and Production Industry
World Business Journal talks to Nabil Alam, Country General Manager of Blencowe Resources, about the bright prospects for graphite mining and material purification in the country and potential buyers for this versatile material in the US and China.
What progress has been made at the Orom Cross Graphite project in the last year?
We completed the pre-feasibility stage, which involved product pre-qualification, testing, finalising the resource base, and establishing graphite quality and quantity. Encouraged by positive results from the pre-feasibility study (PFS), the project transitioned into the definitive feasibility study (DFS) phase. A significant aspect of the DFS is establishing the spherical purified graphite (SPG) plant. This complex process enhances the value of graphite concentrate with purity levels up to 99.97%. Collaborating with the government is pivotal for studying the plant’s economics, addressing power consumption, and determining power sources. The primary goal is to direct a portion of the graphite concentrate to the SPG plant, adding substantial value—a feature nearly unique in African graphite mining. All but one company focuses on exporting concentrates. Aligned with the government’s emphasis on value addition, this commitment has garnered support from the United States Development Finance Corporation, reinforcing an optimistic outlook on successful implementation. With a focus on product pre-qualification, a 100-ton bulk sample sent to China generated significant interest, leading to requests for larger-scale testing. To meet this demand, the project is exporting another 600 tons of ore, aiming to produce around 30 tons of graphite concentrate for extensive testing by potential buyers. The project aims to complete the DFS in Q4 of this year.
In what manner do you anticipate the project addressing the graphite demand?
Our strategic graphite sourcing positions it as the greenest and safest supplier compared to peers in Tanzania and Madagascar. Our reliance on hydroelectric power, combined with a secure country, supportive government, and high-quality graphite, places us in an advantageous position. Potential buyers prioritise sustainability, renewable energy, and positive community impact, which are crucial in decarbonisation. The project is well-positioned to meet global demand, anticipating increased activity in graphite mining over the next decade. With a starting capacity of 50,000 tonnes, our four-stage expansion plan aims to reach 200,000 tonnes per annum within 4 years, anticipating potential production increases beyond conservative forecasts.
Given the 5 million DFC grant, what additional investments are being explored beyond the planned feasibility study?
The DFC grant is dedicated to supporting the development of the graphite mine, extending beyond funding for a feasibility study. With a first right of refusal to invest in the full-scale mine, a comprehensive DFS is imperative. This ensures a 100% confirmation of results, the existence of offtake agreements, and a ready market. This collaboration is a valuable option for final project funding, estimated at around $180 million in the initial phase.
