Norge Mining takes control of Europe's largest graphite producer, Skaland Graphite AS

Norway, on December 16, 2024, Norway Mining Ltd. announced its agreement to acquire Skaland Graphite AS, the largest natural graphite producer in Europe. This strategic purchase, made through Norge Mineraler Holding AS, represents a significant milestone for the company as it transitions into a revenue-generating business. Skaland’s graphite mine, located on the island of Senja, is noteworthy for being the world’s highest-grade, operating flake graphite mine and the fourth-largest outside China. With the burgeoning demand for graphite, particularly in battery applications, the acquisition aligns with Europe’s pressing need for a secure supply chain for critical raw materials. The decision comes amid heightened geopolitical tensions and market volatility regarding graphite supplies. China produces around 97% of the world's graphite anodes and has instituted export controls on critical minerals. Consequently, the urgency for Europe to establish its domestic supply chain has intensified as it currently relies heavily on imports, mainly from countries like China, Tanzania, and Mozambique, for approximately 100,000 tonnes of natural graphite each year. The EU reclassified graphite as an EU Strategic Raw Material in 2023, underscoring its significance in various industrial applications and the green energy transition. Norge Mining aims to capitalize on Skaland's existing operations and potent resource potential while also developing new production lines for battery-grade graphite. Earlier laboratory tests indicated promising results with graphite grades reaching 96%-99%, which leads the company to anticipate further mineral resource expansion through ongoing geological exploration. Additionally, the Skaland operation will complement Norway Mining's projects, particularly the forthcoming phosphate production at the Eigersund Project. John Vergopoulos, Chief Executive Officer of Norge Mining, expressed his enthusiasm about the acquisition, emphasizing its strategic importance in establishing an integrated supply of critical minerals. The deal is expected to finalize in the first quarter of 2025 after customary closing conditions and regulatory approvals are met. By acquiring Skaland, Norge Mining solidifies its stake in Europe's efforts to create a robust and sustainable supply chain in critical raw materials essential for a greener economy.