Okandjande restart needs money
Northern Graphite remains committed to increasing production, sales
By August 2023, Northern Graphite had a preliminary economic assessment study in hand, which suggested the relocation of the existing processing operations from Okorusu to the mine-site 78 kilometres away.
The Okanjande graphite deposit - owned by North America's only natural graphite producer, Northern Graphite - is scheduled to restart in 2025 at 31 000 tonnes per year, pending financing.This according to the company's website, which said Okanjande hosts 1.6 million tonnes?of?battery grade graphite and has a potential 10-year lifespan, but the mine only produced from August 2017 to October 2018. The project was placed under care and maintenance in the third quarter of 2023.
By August of last year, Northern Graphite had a preliminary economic assessment study by Creo Engineering Solutions in hand, suggesting relocation of the existing processing operations from Okorusu to the mine-site 78 kilometres away. The move is designed to lower operating costs, enhance expansion potential and improve sustainability. The “substantial resource [at Okanjande] provides the potential for modular expansion to much higher production levels”, according to the company.
CEO Hugues Jacquemin has been quoted in local media saying the economics remain attractive under the new plan. However, the company had cash and equivalents of US$0.7 million on 31 March, compared to US$3.1 million on 31 December 2023. In May, Jacquemin admitted to challenging financial markets, “especially given our current share price”, but remained committed to increasing production and sales.
The company's headquarters are in Ottawa, Canada, near its Lac?des Iles (LDI) mine, which has been ramping up to nameplate capacity of 25 000 tonnes per year, with a 64% increase in sales volumes in the first quarter of 2024.