Anglo-Norwegian firm Norge Mining announced on Monday its acquisition of Skaland Graphite AS, the top producer of natural graphite in Europe, from Australia’s Mineral Commodities Ltd. The deal, with financial terms undisclosed, positions Norge as the sole owner of Skaland, which is home to the world’s highest-grade operating flake graphite mine, located on the island of Senja in northern Norway, about 200 km from Tromsø.
The Skaland mine boasts a 2021 JORC-compliant resource estimate of 1.84 million tonnes at 23.6% total graphite content, equivalent to 434,000 tonnes of contained graphite using a 10% cut-off.
The demand for graphite, a critical material in battery production, is projected to surge from $24 billion in 2022 to $38 billion by 2028. Recognizing its importance, the EU classified graphite as a strategic raw material in 2023. Currently, Europe imports about 100,000 tonnes of graphite annually, primarily from China, Tanzania, and Mozambique. However, with China producing 97% of global graphite anodes and imposing export controls, Europe’s need for domestic sources has grown significantly.
“The need for a secure European supply chain has never been greater,” remarked Norge CEO John Vergopoulos.
At its current output of 10,500 tonnes annually, Skaland ranks among the top four non-Chinese graphite producers globally. Norge Mining aims to boost Skaland’s production to include battery-grade graphite while continuing to serve industrial customers.
The acquisition, pending regulatory approvals, is expected to conclude in the first quarter of next year. Additionally, Norge Mining plans to diversify its portfolio by supplying essential battery materials, such as phosphate, from its Eigersund project in southwest Norway.
