- Mineral Commodities has completed its acquisition of a major European graphite producer – Skaland Graphite
- Skaland’s operations are located in Norway and produce the world’s highest-grade crystalline flake graphite
- Mineral Commodities sees this acquisition as a strategic opportunity to become a major global graphite producer
- The company has paid A$6.74 million with a remaining $6.17 million to be paid over five years
- Mineral Commodities’ shares are unchanged today, trading at 21 cents per share
Mineral Commodities has completed its acquisition of 90 per cent of Skaland Graphite AS, Europe’s major producer of crystalline flake graphite.
In April 2019, the company executed a share purchase plan to purchase 100 per cent of the Norway-based graphite company.
Mineral Commodities has paid the initial cash consideration of NOK41.4 million (A$6.74 million). The remaining consideration of NOK38 million (A$6.17 million) is payable over five years.
“The acquisition of Skaland has fast tracked Mineral Commodities to be the largest graphite miner in Europe. Skaland offers excellent geostrategic positioning to capitalise on the fastest growing electric vehicle market globally,” Executive Chairman Mark Caruso said.
Skaland is the owner and operator of the Trælen Graphite Mine and Skaland Processing Facility. These operations are the only ones in Norway who, on average, produce approximately 10kt of graphite concentrate annually.
Currently, the Skaland facility is the world’s highest-grade operating flake graphite mine.
Mineral Commodities sees this acquisition as a strategic opportunity to become a major global graphite producer with two high-grade producing assets.
The company is conducting a pilot scale test work program to determine equipment sizes needed to produce high-grade concentrate.
So far, results have been highly encouraging with grades of between 96 and 99 per cent.
In Q2 2020, Mineral Commodities is targeting processing plant upgrades. The high-grade fines concentrate will form the feedstock for downstream value-adding, including producing Battery Anode Material.
Producing high-grade fines concentrate will position the company as a reliable supplier of high-quality fine products.
“Norway is at the forefront of electric vehicle adoption and with world class infrastructure, provides an excellent environment to build a vertically integrated carbon supply business,” Mark concluded.
Once the plant upgrades have been completed, the company will target increased production of 16ktpa.
Mineral Commodities’ subsidiary MRC Graphite acted as the sole contractual buyer of 100 per cent of the issued capital of Skaland.
As the company now owns a 90 per cent interest in Skaland’s assets, the remaining 10 per cent was transferred to BSG Mining, who facilitated the transaction.
Mineral Commodities’ shares are unchanged today, trading at 21 cents per share in an $88.45 million market cap.