Anglo-Norwegian miner Norge Mining has acquired Skaland Graphite AS, the biggest natural graphite producer in Europe, from the Australian mining company Mineral Commodities Ltd.
The Skaland mine is the world’s highest-grade operating flake graphite mine and the fourth-largest graphite mine outside of China.
It is located in northern Norway on the island of Senja, approximately 200 km from Tromsø. The mine produces about 10,500 tonnes of graphite annually.
The updated JORC compliant mineral resource estimate (2021) at Skaland’s underground Traelen graphite mine is 1.84 million tonnes at 23.6% TGC in the category of indicated and inferred for 434kt of contained graphite using 10% cut-off.
Norge Mining’s strategy for Skaland is to target battery-grade graphite production, in addition to serving current industrial customers. This will complement the company’s planned production of other battery materials, including phosphate, from its Eigersund Project in southwest Norway.
Graphite demand is set to surge, and the global market is projected to grow from $24 billion in 2022 to $38 billion by 2028.
In 2023, the EU reclassified graphite as a strategic Raw Material. Currently, the bloc imports around 100,000 tonnes of natural graphite annually, predominantly from China, Tanzania, and Mozambique.
Norge Mining will acquire 100% of Skaland on a cash and debt-free basis. The transaction is expected to close in Q1 2025 following the conclusion of customary closing conditions and regulatory approvals.
The announcement comes as China, which currently produces 97% of the world’s graphite anodes, has recently introduced export controls on graphite and other critical minerals.
“Consequently, the need for a secure European supply chain has never been greater,” said Norge Mining CEO John Vergopoulos.
