London-listed Blencowe Resources has confirmed the Orom-Cross graphite project’s potential to produce 20 000 t/y of concentrate in Phase 1 of its development before expanding to 70 000 t/y of concentrate and 20 000 t/y of uncoated spherical purified graphite (USPG) in Phase 2.

The company demonstrates in a definitive feasibility study (DFS) for the Uganda-based Orom-Cross its potential to be a Tier 1 graphite project for an initial 15-year mine life – based on 2% of the deposits drilled.

Blencowe expects significant life-of-mine extensions as further drilling is planned to convert more resources to reserves.

The DFS marks the single-most important technical milestone in Blencowe’s history and formally transitions Orom-Cross into the financing and development phase.

The DFS has various differences compared with the prefeasibility study, including a lower risk profile for Phase 1 production, higher Phase 2 production, a micronisation plant, a downstream beneficiation facility and a higher net present value (NPV) and internal rate of return (IRR).

Key findings in the DFS include the project’s NPV of $1.09-billion, IRR of 96%, all-in sustaining cost of $485/t over the life of the mine and earnings before interest, taxes, depreciation and amortisation potential of $230-million a year.

Blencowe says the smaller-scale first phase of production can be fast-tracked to start in the first half of 2027, with Phase 2 planned for within two years after.

The company ultimately aims to scale up the project in phases to produce 175 000 t/y of concentrate and 20 000 t/y of USPG.

A downstream beneficiation facility will be built near the mine to upgrade small flake concentrate to 99.95% total graphitic carbon USPG to meet the 20 000 t/y target. “This will position Orom-Cross among the few commercial-scale producers of high-purity USPG outside of China, and the first in Africa,” the company says.

Blencowe already has nonbinding offtake agreements in place for all planned Phase 1 production.

The capital requirement for Phase 1 is estimated at $40-million, while another $120-million will be required in due course for Phase 2. The company plans to fund the Phase 2 expansion of the operation entirely from internal cash flow.

Phase 1 has been designed to be profitable from first production, which materially reduces financial risk for the company.

Blencowe is now working to secure the Phase 1 project financing package, with active engagements being ongoing with development finance institutions, strategic industry partners, institutional investors and government funding bodies.

Importantly, the company expects Phase 1’s financing to be primarily funded through non-Blencowe equity structures.

Blencowe believes that demand for natural flake graphite, particularly high-purity anode material such as that produced at Orom-Cross and at the USPG facility, will grow materially over the medium term.

“Graphite remains an essential, non-substitutable component of lithium-ion batteries used for energy storage and electric vehicles. Supply is forecast to tighten sharply as global decarbonisation accelerates,” chairperson Cameron Pearce says.

He adds that Orom-Cross is exceptionally well positioned as a near-term producer with a defined development pathway. Once in production, Pearce confirms the project will be highly leveraged to rising graphite prices, with its low operating costs ensuring strong margins across a wide range of market conditions.

With the company’s diverse network of relationships across Western and Asian markets, Blencowe intends to prioritise niche and premium applications to maximise returns – especially once purified USPG production starts.

Orom-Cross will also benefit from additional drilling, but undeveloped deposits such as Beehive and Iyan can be rapidly converted to support higher production if required.