• Two-phase project targets 90,000 tons output; $160 million funding needed
  
  
• Project valued at $1.08B; aims to diversify graphite supply beyond China
  

Blencowe Resources published a definitive feasibility study on Monday for its Orom-Cross graphite project, which is set to become Uganda’s first graphite mine. The British company outlined a two-phase development plan, with initial production expected in the first half of 2027.

Phase one is designed to produce 20,000 tons of graphite concentrate a year. Phase two would lift output to 70,000 tons of concentrate and add 20,000 tons of uncoated purified spherical graphite (USPG). The mine is expected to operate for 15 years.

USPG, a high-value intermediate product used in electric vehicle battery anodes, would be processed at a nearby plant. Pre-sale agreements that cover all volumes from this phase have already been signed, the company said.

Phase one requires an initial investment of $40 million, while total funding needs for both phases amount to $160 million. Blencowe said discussions are under way with development finance institutions, industrial groups, institutional investors and government bodies.

The company aims to secure the phase-one financing, which will exclude equity, by the end of the first quarter of 2026. This would allow it to begin ordering equipment and start construction. Phase-two financing will combine debt and a strategic partnership, with talks already under way with institutions including the U.S. International Development Finance Corporation and the African Finance Corporation.

The feasibility study puts the project’s net present value at $1.08 billion and forecasts more than $2 billion in cash flow over its life. The project is positioned as an alternative in a global graphite supply chain heavily dominated by China.

Blencowe must also contend with a graphite market that has been depressed for several years, driven by excess output from Chinese synthetic graphite producers. The downturn has forced one of Africa’s main producers, Australia’s Syrah Resources, to run its Mozambican mine on a “campaign” basis, alternating between operating and idle periods to match demand.

Blencowe is banking on a stronger graphite price cycle by the time Orom-Cross enters production, and on its relatively low operating costs to stay competitive.

Emiliano Tossou