LONDON, Dec. 16, 2024 - Norge Mining, the Anglo-Norwegian company with a world-class resource of Critical Raw Materials in southwest Norway, announces that, through its Norwegian subsidiary Norge Mineraler Holding AS, it has agreed to acquire Skaland Graphite AS ("Skaland"), the biggest natural graphite producer in Europe, from the Australian mining company Mineral Commodities Ltd ("MRC").
The acquisition marks a transformative milestone for Norge Mining, elevating it into a revenue-generating, producing business and is in line with its mission to secure supply chains for Strategic and Critical Raw Materials inside Europe. The urgency of this mission has intensified following China's recent export controls on graphite, the cornerstone material for lithium-ion batteries used in electric vehicles, energy storage, and other technologies critical to the green energy transition.
Norge Mining's strategy for Skaland is to target battery-grade graphite production, in addition to serving current industrial customers, complementing the Company's planned production of other battery materials, including phosphate, from the Company's Eigersund Project in southwest Norway.
In 2023, the EU reclassified graphite as an EU Strategic Raw Material, emphasising its critical role in industrial applications and the green energy transition. Graphite demand is set to surge, with global market projected to grow from US$24 billion in 2022 to US$38 billion by 2028 (Statista). Currently, the EU imports around 100,000 tonnes of natural graphite annually, predominantly from China, Tanzania and Mozambique.
The Skaland mine, which is the world's highest-grade operating flake graphite mine, is among the world's top four graphite producers outside of China. It is located in northern Norway on the island of Senja, approximately 200 km from Tromsø. Skaland produces about 10,500 tonnes of graphite annually and supplies a predominantly industrial customer base.
The updated JORC compliant mineral resource estimate (2021) at Skaland's underground Traelen graphite mine is 1.84 million tonnes at 23.6 per cent TGC in the category of indicated and inferred for 434kt of contained graphite using 10 per cent cut-off. Laboratory-scale testwork by MRC to optimise the grade of the fines gave highly encouraging results with grades of 96%-99% TGC achieved. The Company believes there is also significant potential to increase the mineral resource at Skaland through further work.
Norge Mining will acquire 100 per cent of Skaland on a cash and debt free basis. The transaction is expected to close in Q1 2025 following the conclusion of customary closing conditions and regulatory approvals.
The acquisition solidifies Norge Mining's position as a leader in Europe's push for a secure, sustainable supply of Strategic and Critical Raw Materials essential for the green economy.
John Vergopoulos, Chief Executive Officer of Norge Mining, said:
"Skaland is a globally important graphite asset and its acquisition is a major strategic step for Norge Mining in becoming an integrated supplier of critical materials to the Western world. Skaland has been in operation for several decades and represents a strategic complement to the minerals that we plan to supply from our critical mineral project in Eigersund, southwest Norway.
"Skaland has significant potential in a market growing in both size and strategic importance. Along with our Norwegian subsidiary, Norge Mineraler, we possess the expertise and capital to optimise operations at Skaland in cooperation with the local team, who we look forward to welcoming to the Company.
"This announcement comes at a time when China, which currently produces 97% of the world's graphite anodes, has recently introduced export controls on graphite, and other critical minerals. Consequently, the need for a secure European supply chain has never been greater."
For further information, please contact:
Burson Buchanan
+44 (0) 20 7466 5000
Mark Court / George Pope
norgemining@buchanan.uk.com
For media enquiries:
Celicourt Communications
+44 (0) 20 7770 6424
Mark Antelme / Philip Dennis
norgemining@celicourt.uk
About Norge Mining
Norge Mining is an Anglo-Norwegian natural resources company focused on mineral exploration in Norway.
The Company's JORC resource estimates from the Bjerkreim Exploration Project in southwest Norway have confirmed world-class deposits of the EU Critical Raw Materials phosphate, vanadium and titanium, materials with key roles in the clean energy transition, security of food supply and other areas. The provenance of these materials is also of significant strategic importance for net carbon zero and ESG commitments, a key requirement for which is supply chain transparency.
Norge Mining, which owns 61 exploration licences totalling 520 sq km in southwest Norway, was awarded extraction rights in June 2024 by the Norwegian Directorate of Mining to 32 areas totalling 26.3 sq km, representing 5% of the total exploration area. The pre-feasbility study for the Eigersund Project, the most advanced project in the Bjerkreim Exploration Project, was also completed in 2024 demonstrating a time duration of supply of generations.
Founded in November 2018, the Company is headquartered in the UK and has a 100%-owned Norwegian subsidiary, Norge Mineraler AS. The Company's ambition is to become a substantial, sustainable and strategically important exploration, mining and processing business in Europe.
For further information, please visit www.norgemining.com
SOURCE Norge Mining
