Norge Mining acquires Europe’s largest natural graphite producer

Anglo-Norwegian firm Norge Mining said on Monday it will buy Skaland Graphite AS, Europe’s top natural graphite producer, from Australia’s Mineral Commodities Ltd. for an undisclosed sum.

The cash deal will give Norge full control of Skaland, hailed as the world’s highest-grade operating flake graphite mine. It is located in northern Norway on the island of Senja, approximately 200 km from Tromsø.

The underground graphite mine 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.

Global demand for graphite is expected to grow from $24 billion in 2022 to $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, and has now imposed export controls, raising 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.

At its current production rate of 10,500 tonnes annually, Skaland is ranked among the world’s top four graphite producers outside of China.

Norge plans to expand Skaland’s production to include battery-grade graphite. It will also maintain supplies to industrial customers.

The deal should close in the first quarter of next year, pending regulatory approvals.

Norge also has plans to supply key battery materials including phosphate from its Eigersund project in southwest Norway.