Blencowe Resources has signed a memorandum of understanding (MoU) with Singapore-based graphite sales and marketing specialist Triessence, alongside an Asian producer of spheronised purified graphite (SPG) and anode materials.
Under the MoU, the parties aim to form a joint venture (JV) to build a graphite beneficiation facility in Uganda, near Blencowe’s Orom-Cross project.
This facility will produce 99.95% purified graphite for use in manufacturing lithium-ion batteries.
Blencowe and Triessence will each hold a 50% stake in the facility, with the Asian SPG producer providing operational expertise.
Triessence will fund 50% of the capital costs and will purchase all the end products, ensuring steady revenue and premium pricing for some of the first 99.95% SPG produced outside China.
“Blencowe has long recognized the advantages of upgrading graphite in-country, and securing experienced partners is critical to achieving successful SPG production,” said Blencowe Chairperson Cameron Pearce.
“This MoU marks a significant milestone, adding value and distinctiveness to our company. Our JV team will now focus on the SPG facility feasibility study, integrating it with the Orom-Cross definitive feasibility study to create a comprehensive solution.”
Blencowe retains full ownership of the Orom-Cross mine, and by directing small flake concentrate from the mine to the JV-owned SPG facility, the company can avoid the pricing pressures faced by peers selling concentrate in competitive Asian markets. This ensures consistent sales and favorable market pricing for Orom-Cross.
With its 50% stake in the SPG facility, Blencowe will also benefit from selling uncoated 99.95% SPG at a premium price of around $2,000 per tonne, compared to approximately $500 per tonne for 96% concentrate.
Proximity to the SPG facility will also significantly reduce Orom-Cross’ logistics and operating costs, improving overall project economics.
