Name of the Project
Orom-Cross graphite project.

Location
Uganda.

Project Owner/s
Graphite, nickel and copper developer Blencowe Resources.

Project Description
A prefeasibility study (PFS) has highlighted an exceptional long-life project that delivers considerable returns over an initial life-of-mine of 14 years.

An estimated 600 000 t/y of ore will be mined from the commissioning date and this will increase to 2.4-million tonnes a year by the time the project is fully ramped up in Year 10.

Mining will be free-dig, with no drill-and-blast required. Initial ore will come from saprolite (clay) at an average depth of about 15 m to 20 m. Both deposits (Northern syncline and Camp lode) identified in the drilling programmes will be mined and a composite blend of both will be fed into the processing plant that will be built on site.

An initial 36 000 t/y of end-product will be delivered from the plant as concentrates, which will increase in two additional stages to 147 000 t/y once the mine is fully ramped up. 

Further resources, higher production volumes and an extended mine life can all be obtained at any stage by drilling additional ready-targets. This, however, is not currently considered a priority.

The processing flowsheet comprises a flash and rougher flotation stage, followed by a primary cleaning circuit with a polishing mill and three stages of cleaner flotation. The intermediate concentrate is classified and then further upgraded in secondary cleaning circuits using stirred media mills, followed by cleaner flotation.

Orom-Cross will deliver at least five different end-products, characterised by +50 mesh, + 80 mesh, +100 mesh, +150 mesh and -100 mesh. These products will have different markets and will be branded and packaged on site.

Initially, transport to port will be by road, but it is expected that a rail option might be available by 2025, further reducing logistics costs.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at an 8% discount rate, of $482-million and an internal rate of return of 50%.

Capital Expenditure
The initial capital requirement has been lowered by 23%, to $62-million, since the preliminary economic assessment was announced in 2021. 

Planned Start/End Date
The initial start-up phase of Orom-Cross development is targeted for 2026.

Latest Developments
Blencowe Resources has signed an additional nonbinding offtake agreement with China-based Qingdao TaiDa Carbon for the supply of natural fine flake concentrate from the project.

TaiDa is one of the largest producers of uncoated spheronised purified graphite (SPG) in the world. It supplies Tier 1 battery manufacturers and industrial users globally.
Following a successful marketing trip to the US, UK, and Asia, Blencowe continues to hold positive discussions with several other potential offtake customers for the balance of its planned annual production.

Blencowe says the agreement with TaiDa follows extensive engagement between the companies’ senior management teams. It builds on 18 months of successful product testing and validation, completed as part of two bulk-sample test programmes during the definitive feasibility study (DFS), which is due mid-2025. These programmes were aimed at prequalifying the company to proceed with offtake agreements.

The company notes that TaiDa’s position as a global leader in purified graphite adds further commercial credibility to the Orom-Cross project. It also paves the way for future sales to TaiDa’s joint venture partner, Mitsubishi Chemicals, as well as other Tier 1 international buyers.

Blencowe says the TaiDa offtake agreement underpins its decision to expand Phase 1 production at Orom-Cross from 5 000 t/y to 10 000 t/y. This expansion is critical to ensuring profitability from the outset.

All product supplied to TaiDa will be processed in China before being exported to TaiDa’s downstream partners.

Blencowe adds that supply to non-China markets may attract a price premium for Orom-Cross concentrate sales.

The deal also lays the groundwork for Blencowe’s planned in-country SPG facility in Uganda. This facility will allow for domestic purification, reduce operating costs, and help capture substantial downstream value – where the bulk of profit in global graphite markets is currently made.

In parallel, the company is in discussions with other original-equipment manufacturers and downstream processors in the US and UK regarding both large- and smaller-flake graphite products.

Blencowe says testing by these and several other companies is currently under way. The company is focused on securing full sales coverage for its Phase 1 production, which is targeted for 2026.

The agreement with TaiDa includes the supply of 5 000 t/y of 96% graphite concentrate for an initial three-year period, with the potential for extension and expansion.

It also covers 50% of Phase 1’s planned production of 10 000 t/y, targeted from 2026.

Key Contracts, Suppliers and Consultants
Battery Limits (PFS); IMO (technical testwork); and CPC Engineering (DFS).

Contact Details for Project Information
Blencowe Resources, tel +44 1624 681 250 or email info@blencoweresourcesplc.com.