Anglo-Norwegian firm Norge Mining is to buy Skaland Graphite, Europe’s top natural graphite producer, from Australia’s Mineral Commodities for an undisclosed sum.
The cash deal will give Norge full debt-free control of Skaland. It should close in the first quarter of next year, pending regulatory approvals.
Skaland’s Traelen mine is on Senja island in northern Norway, 200 km from Tromsø. It is the world’s highest-grade operating flake graphite mine. The site holds a 2021 JORC-compliant resource estimate of 1.84 million tonnes at 23.6% total graphite content, equating to 434,000 tonnes of contained graphite using a 10% cut-off. The mine produces approximately 10,500 tonnes of graphite annually.
Global demand for graphite is expected to grow from US$24 billion in 2022 to US$38 billion by 2028. In 2023, the EU classified graphite as a strategic raw material. It relies on imports of about 100,000 tonnes a year from China, Tanzania and Mozambique. China produces 97% of the world’s graphite anodes. It has now imposed export controls. This raises Europe’s need for domestic sources.
“The need for a secure European supply chain has never been greater,” Norge CEO John Vergopoulos said in a statement.
Norge plans to expand Skaland’s production to include battery-grade graphite. It will also maintain supplies to industrial customers.
Norge also plans to supply key battery materials, including phosphate, from its Eigersund project in southwest Norway.
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