The Amitsoq graphite mine in Greenland is poised to produce an average of 77 000 t/y of concentrate, at a minimum grade of 94%, over a mine life spanning two decades, developer GreenRoc reported on Tuesday.

Announcing the outcomes of a preliminary economic assessment (PEA), CEO Stefan Bernstein said that the study provided an independent validation of the Amitsoq project’s potential to become a globally significant producer of graphite concentrate.

At the same time, GreenRoc is advancing studies to upgrade the future graphite concentrate production into anode material for electric vehicle batteries.  

The PEA confirms the project’s “robust” economic figures, with an aftertax net present value of $179-million, an internal rate of return of 26.7% and capital costs of $131-million.

Bernstein said that the mine plan set out in the PEA was relatively straightforward thanks to Amitsoq's simple orebody geometry.

“All of the on-site processing equipment is based on the use of standard and proven techniques, but with potential upside through the use of some new, and more efficient, processing technologies that we are currently exploring.

He stated that the entire mining operation would take place in the Lower Graphite Layer, thus reserving the Upper Graphite Layer for production expansion, or to extend the mine life.

“About 75% of the mined ore in the PEA is sourced in the measured and indicated category and, given the simple ore body geometry, we are confident that the remaining 25% can be upgraded into the higher confidence resource categories.

"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 a mere 14% required to go to a tailing storage facility. This is excellent news as it will minimise the environmental impact of the mine, whilst also saving the cost of transporting tailings,” said Bernstein.

Further, Bernstein commented that China's announcement in the past few days of its imminent imposition of export restrictions on Chinese battery-grade graphite provided the “perfect backdrop to the release of the Amitsoq PEA and flags up the increasing strategic importance of Amitsoq to the European and North American battery supply chain”.

"This PEA provides independent validation of our focus and determination to get the Amitsoq mine up and running in the shortest time possible while, at the same time, developing graphite anode material processing capability through our recently initiated anode feasibility study in conjunction with the UK's Advanced Propulsion Centre. I am confident that the anode feasibility study will, in due course, provide further upside to Amitsoq and for our investors."