The purchase price for Skaland Graphite AS was 11.75 million dollars or 11.2 million euros, according to Norge Mining. For Norge Mining, which was founded by Swiss entrepreneur Michael Wurmser, the acquisition is ‘a transformative milestone’. On the one hand, Skaland is the company’s first producing mine, as Norge Mining actually specialises in the development of such projects. And secondly, Norge Mining’s focus was not on graphite at all, but on phosphate mining in southern Norway.
Graphite is one of the critical raw materials for battery production, as the anodes of almost all battery cell types are coated with graphite. Globally, China is the biggest producer of high-purity graphite and has already imposed export restrictions on certain products. High-purity graphite with a purity of 99.9 per cent is required for battery production.
This is one of the ongoing challenges in Skaland. According to Norge Mining, the Norwegian mine has only achieved 94 per cent so far and is thus unable to supply battery manufacturers. However, according to laboratory tests still being carried out by MRC, up to 99 per cent is possible. With further refinement, the automotive industry could also be won as a customer. “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,” Norge Mining announced.
However, with the current customer and cost structure, graphite production in Skaland is a loss-making business. Data provider Northdata lists losses in the millions for the past few years, with losses of more than NOK 30 million or 2.5 million euros at the end of 2022. At that time, the company had negative equity of 8.7 million euros. There is no balance sheet for 2023 yet. At the end of November, the previous owner MRC admitted delays in preparing the balance sheet for 2023 but denied Norwegian media reports that the mine was insolvent.
Despite the current problems, which Norge Mining attributes more to the previous owner MRC, the company is confident that it has made a good deal. “Skaland has significant potential in a market growing in both size and strategic importance. Along with our Norwegian subsidiary, Norge Mineraler, we possess the expertise and capital to optimise operations at Skaland in cooperation with the local team, who we look forward to welcoming to the Company,” said John Vergopoulos, CEO of Norge Mining.
prnewswire.com, mineralcommodities.com
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Publish date : 2024-12-17 04:15:00
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