Anglo-Norwegian natural resources company Norge Mining has agreed to acquire natural graphite producer Skaland Graphite from the Australian mining company Mineral Commodities (MRC).
Under the terms of the binding and conditional share purchase agreement, the total purchase price of the deal is $11.75m on a cash and debt-free basis.
Through the proposed deal, Norge Mining aims to transition into a revenue-generating producer while advancing its strategy to secure European supply chains for strategic and critical raw materials.
The move is particularly timely, as recent Chinese export restrictions on graphite have underscored the urgency of diversifying global sources for this essential material, said Norge Mining.
The acquisition also aligns with Norge Mining’s broader plans to produce battery-grade graphite, complementing its ongoing development of phosphate and other battery materials at its Eigersund project in southwest Norway.
Located on the island of Senja in northern Norway, the Skaland graphite mine is said to be the world’s highest-grade flake graphite mine and ranks among the top four graphite producers outside China.
The mine produces approximately 10,500 tonnes of graphite annually, primarily for industrial customers.
A 2021 JORC-compliant resource estimate identified 1.84 million tonnes of graphite ore at the Skaland mine, with a high-grade 23.6% total graphite content (TGC), translating to 434,000 tonnes of contained graphite.
In 2023, the EU classified graphite as a strategic raw material. The EU currently imports around 100,000 tonnes of natural graphite annually, primarily from China, Tanzania, and Mozambique.
MRC CEO Scott Lowe said: “Selling Skaland will allow MRC to strengthen its balance sheet and concentrate entirely on the Munglinup graphite project in Western Australia and the downstream active anode project.
“The company’s streamlined business strategy will be to advance and develop these two excellent projects and take advantage of the global focus on critical and battery minerals that includes graphite.”
Established in 2018, Norge Mining owns 61 exploration licences totalling 520km2 in southwest Norway.
The company was also awarded extraction rights in June 2024 by the Norwegian Directorate of Mining to 32 areas totalling 26.3km2, representing 5% of the total exploration area.
Norge Mining CEO John Vergopoulos said: “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.”
The transaction is expected to be completed in Q1 2025, subject to regulatory approvals and customary conditions.
