Norge Mining has acquired the Skaland graphite plant in Norway from Australian mining company Mineral Commodities (MRC) for $11.75 million (€11.2 million), a move expected to rescue the plant from potential insolvency. The purchase marks a strategic shift for Norge Mining, primarily known for phosphate mining projects in southern Norway, as Skaland becomes its first operational mine.
Graphite, a critical material in battery production for electric vehicles, requires high-purity levels of 99.9% to be suitable for battery anodes. While Skaland has achieved a purity level of 94%, ongoing laboratory tests suggest it could reach 99% with further refinement. Norge Mining plans to enhance the facility’s capabilities to produce battery-grade graphite, broadening its customer base to include the automotive industry. The acquisition complements the company’s existing plans to produce other battery materials, including phosphate, from its Eigersund project.
Despite its potential, Skaland has faced financial challenges under MRC’s ownership, reporting losses exceeding NOK 30 million (€2.5 million) in 2022 and negative equity of €8.7 million. However, Norge Mining attributes these issues to previous management and remains optimistic. CEO John Vergopoulos stated, “Skaland has significant potential in a market growing in both size and strategic importance. With our expertise and capital, we aim to optimize operations and develop battery-grade graphite production.”
Norge Mining’s acquisition aligns with increasing global demand for locally sourced raw materials for battery manufacturing. This shift is particularly significant as China, the largest producer of high-purity graphite, has imposed export restrictions, intensifying the need for alternative suppliers. The company plans to work closely with the local Skaland team to improve operations and unlock the mine’s potential.