Mineral Commodities has acquired Norwegian company Skaland Graphite, significantly boosting its capacity as a flake graphite producer.
The ASX-listed company has acquired 100 per cent of equity in Skaland for US$9.2M ($12.9 million), which will be paid over a period of five years.
Skaland produces around 10,000 tonnes of graphite concentrate a year from its Trælen mine and Skaland processing plant in Troms, northern Norway.
Mineral Commodities is in its final stages of completing a definitive feasibility study at its Munglinup graphite project in Western Australia, and the combination of Munglinup and Skaland’s Trælen operations will provide Mineral Commodities with the potential to operate two of the highest-grade Tier 1 graphite projects in the world.
The Skaland acquisition also provides Mineral Commodities with an immediate graphite market presence that will assist in marketing concentrate and de-risk development at Muglinup.
“Skaland presents an excellent opportunity for Mineral Commodities to gain near-term graphite production capacity,” said Mineral Commodities chairman Mark Caruso.
“When combined with the upcoming development of the Munglinup graphite project, Mineral Commodities will, in a very short time, become a major global strategic graphite producer with two high-grade graphite producing assets in Tier 1 jurisdictions.”
Skaland is the owner and operator of the Trælen graphite mine and Skaland processing facility, Norway’s only graphite operation. Skaland is one of the largest flake graphite producers in Europe and the fourth largest producer globally outside of China. The mine has been operating since 2007.
Mineral Commodities is a global mining and exploration company, developing high-grade mineral deposits with the industrial minerals, base metals, bulk commodities and precious metals sectors.