Name of the Project
Amitsoq graphite project.

Location
Southern Greenland.

Project Owner/s
British mining company GreenRoc Strategic Materials.

Project Description
A preliminary economic assessment has proposed a 400 000 t/y operation with a 22-year life-of-mine (LoM).

The total mined inventory is estimated at 8.26-million tonnes of ore with an average of 21.3% graphite.

The mine plan proposes mining only from the lower graphite layer, leaving considerable resources from the upper graphite layer for future production expansion or extension of the LoM.

The proposed use of a drift-and-fill mining method, coupled with the exceptionally high grades of the Amitsoq ore, will mean that as much as 86% of the tailings will be used as backfill, with only 14% required to go to a tailings storage facility.

Mining will be conducted using a fleet of diesel-powered, electrohydraulic drill jumbos, bolters, load-haul-dump machines and underground fitted trucks.

Potential Job Creation
About 172 jobs will be created.

Net Present Value/Internal Rate of Return
The project has an estimated pretax net present value, at an 8% discount rate, of $235.31-million and an internal rate of return of 31.1%, with a four-year payback from start of production.

Capital Expenditure
About $131-million, including a 25% contingency.

Planned Start/End Date
Not stated.

Latest Developments
GreenRoc has received a letter of interest from the Export and Investment Fund of Denmark (EIFO) to provide funding.

The EIFO usually issues AAA-rated guarantees, supported by Denmark, of loans provided by financial institutions. It has been involved in the financing of a significant number of transactions and projects across all continents.

GreenRoc will use the financial support, if realised, towards the acquisition of equipment and services from FLSmidth and other Danish suppliers, to progress its feasibility study on the project and eventually the construction of the planned mine.

The EIFO and GreenRoc have successfully worked with FLSmidth on projects globally.

GreenRoc will now work with the EIFO to develop a detailed financing proposal. The issuance of an EIFO guarantee will be subject to normal and customary project due diligence.

Meanwhile, the company is undertaking work to determine the best methods for the beneficiation of Amitsoq’s graphite ore into graphite concentrate. The testwork currently involves the use of FLSmidth’s newly developed pressurised flotation cell Reflux technology.

The test system has a smaller footprint, higher throughput rate and reduced water and energy consumption, compared with standard flotation systems.

The EIFO anticipates that the Amitsoq mine, once operational, will contribute to Greenland’s economy by creating numerous local jobs and driving GDP growth.

GreenRoc also has a letter of intent in place to secure an area for an active anode materials plant, in southern Norway, as well as expressions of support from the European Raw Materials Alliance and the US Export-Import Bank for future development.

In November last year, GreenRoc signed a memorandum of understanding with Morrow Batteries, which has a gigafactory in Norway, to collaborate on a regional supply chain for battery anode material.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
GreenRoc Strategic Materials, tel +44 20 3950 0724 or email info@greenrocmining.com.