(Ecofin Agency) - Orom-Cross’s annual output is forecast at 100,000 tonnes by 2026. The project could thus become Uganda’s top graphite mine by then. The venture requires an initial investment of $62 million, a sum that could be secured more swiftly with the participation of the Africa Finance Corporation (AFC).

The Africa Finance Corporation (AFC), a leading pan-African financial institution, has formally expressed interest in financing Uganda’s Orom-Cross graphite project, according to Blencowe Resources, the project’s owner. The AFC’s proposal includes a combination of debt financing and equity investment, signaling confidence in the project’s long-term value.

Initially, the AFC plans to support Phase 1 of the mine’s development, targeting an annual production of 5,000 tonnes of graphite concentrate by 2026. Beyond this initial phase, the AFC intends to remain involved, potentially expanding its investment through direct or indirect equity stakes as the project progresses.

While Blencowe has not yet disclosed how much AFC will invest, a 2022 pre-feasibility study estimated the initial investment at $62 million. Production is expected to rise to 50,000 tonnes annually by 2027-2028 and reach 100,000 tonnes by 2030.

AFC’s interest may relate to graphite’s rising demand for electric vehicle batteries. Africa holds abundant graphite resources, though China dominates global supply. The Orom-Cross project includes a local plant in Uganda that can produce 99.95% purified graphite for lithium-ion batteries.

Blencowe and AFC have not yet reached an agreement. Discussions with AFC and other lenders are ongoing to secure financing for production in 2026. The U.S. Development Finance Corporation (DFC) has already granted $5 million for the project in 2023.

This article was initially published in French by Emiliano Tossou

Edited in English by Ange Jason Quenum