Australian Owner Sells Graphite Producer in Northern Norway
In addition to the acquisition of Skaland Graphite in Northern Norway, Norge Mining also aims to establish sustainable mineral extraction in Eigersund municipality in the southwest of Norway. The company was awarded extraction rights by the Norwegian Directorate of Mining. (Photo: Norge Mineraler).
Through its Norway-based subsidiary, Norge Mineraler, the UK-registered Norge Mining has entered into an agreement to acquire Skaland Graphite.
The mineral exploration company Norge Mining has entered into an agreement to acquire the graphite producer Skaland Graphite on Senja in Northern Norway.
The company will acquire 100 percent of Skaland, and the transaction is expected to be completed during January 2025, subject to necessary approvals.
Skaland Graphite is Europe's largest producer of natural graphite and is currently owned by the Australian mining company Mineral Commodities Ltd (MRC), which is listed on the Australian Securities Exchange.
The UK-registered Norge Mining is acquiring Skaland through its 100 percent-owned Norway-based subsidiary Norge Mineraler Holding. The main owner and founder of Norge Mining is Swiss Michael Wurmser.
The company already has large-scale plans for mineral extraction of critical raw materials in Eigersund municipality in southwest Norway.
Skaland Graphite on Senja in Troms county, Northern Norway, is Europe's largest producer of natural graphite. (Photo: Amund Trellevik / Investigate Europe).
Critical raw material
“Skaland is a globally important graphite asset and its acquisition is a major strategic step for Norge Mining in becoming an integrated supplier of critical materials to the Western world," says Chief Executive Officer John Vergopoulos of Norge Mining in a press release.
"Skaland has been in operation for several decades and represents a strategic complement to the minerals that we plan to supply from our critical mineral project in Eigersund, southwest Norway," he adds.
Graphite is a mineral that plays a key role in the green energy transition. Natural graphite is used in the production of lithium-containing batteries, as well as in refractories for steelmaking, as the mineral is highly heat-resistant.
The EU has listed natural graphite as a critical raw material. The criteria for being listed are both high economic importance for the EU and the high risk of supply disruption.
In 2023, the EU also classified natural graphite (battery grade) as a EU Strategic Raw Material. The strategic importance is among others determined based on the relevance of a raw material for the green and digital transition, as well as industrial applications.
Critical raw materials are supplied by a small group of countries, including China, Russia, South Africa and Australia. The largest global supplier of natural graphite is currently China, with a share of 67 percent, according to the EU's list of critical raw materials from 2023.
The press release further points out that China has recently introduced export restrictions on graphite, and that the need for a secure European supply chain is therefore great.
Skaland Graphite
- Skaland is the only operating graphite mine in Scandinavia.
- The largest producer of natural graphite in Europe.
- Located on Senja, approximately 200 km from Tromsø.
- Skaland Graphite has been in continuous operation since 1917
Well received
Public relations officer Erik Joa in subsidiary Norge Mineraler explains that the news of the acquisition was well received among the employees at Skaland, as well as in professional circles and among politicians.
As reported by Folkebladet, among others, Skaland Graphite has struggled financially in recent years. In November, the newspaper reported that the mining company had 160 payment notices. The company's results for 2022 showed a loss of NOK 33 million.
"As is known, the operating system has been quite run down. The first thing we will do is bring in resources and contribute expertise to get this up and running," Joa says to HNN and elaborates:
"As a first step, we must ensure stable and good operations, and that the processes run optimally. We must also take care of and use the potential in existing markets, and not least ensure that employees and management have safe and good working conditions. When you have these things, the results will come."
– Significant opportunities for Skaland
“Skaland has significant potential in a market growing in both size and strategic importance. Along with our Norwegian subsidiary, Norge Mineraler, we possess the expertise and capital to optimise operations at Skaland in cooperation with the local team, who we look forward to welcoming to the company," CEO Vergopoulos of Norge Mining adds in the press release.
Subsidiary Norge Mineraler also notes that the graphite mine has great potential to achieve profitable growth, supported by solid demand for natural graphite within existing application areas, such as the steel industry and the automotive industry.
In the longer term, the increasing demand from Western manufacturers of lithium-ion batteries also represents significant opportunities for Skaland as a possible supplier of natural graphite anode materials, writes Norge Mineraler, adding that the geographical proximity to European markets makes the company well positioned in society's transition to clean energy.
"In connection with the Eigersund project, we have built up the organization and expertise in Norway, especially within the extraction and processing of high-quality mineral concentrate. In the long term, there is great potential in graphite anode material and its utilization in battery technology. It therefore appears that the market prospects for Skaland will be good going forward," summarizes public relations officerJoa.
