Blencowe Resources (BRES ) has selected its preferred site for the future downstream operations associated with its Orom-Cross graphite project in Uganda.
The company has secured, by way of an option to purchase, a site of 100 acres located approximately 35 kilometres north of Gulu in northern Uganda, as the future base for downstream processing operations to further beneficiate Orom-Cross graphite concentrate into purified products.
The agreed purchase price for the site is US$70,000, with a 30% down payment payable to secure the option.
The option runs for an initial six-month period, with a further three-month extension available. The company considers the cost to be modest and aligned with its staged downstream development strategy.
The infrastructure surrounding the site is particularly strong, with direct access to a large modern electrical substation connected to Uganda's hydroelectric power network, including generation from the Karuma Falls Hydropower Station, as well as access to a permanent water source.
The scale of this site supports future anticipated growth as both Orom-Cross and the beneficiation facility ramp up together.
The planned downstream facility is expected to support the Company's long-term strategy to move beyond graphite concentrate sales into higher-value upgraded graphite products, including spheronised graphite and expandable graphite.
Spheronisation is a key processing step used to shape graphite into spherical particles suitable for downstream battery-related applications, subject to further purification, coating, customer qualification and commercial requirements.
Expandable graphite is used across a range of industrial, fire-retardant, thermal management and energy-related applications.
Blecncowe is now progressing an Environmental and Social Impact Assessment (ESIA) for the site and confirming infrastructure costings.
“Securing a preferred downstream processing site near Gulu is an important step in Blencowe's strategy to build Orom-Cross into more than a conventional graphite concentrate project,” said Blencowe Resources executive chairman Cameron Pearce.
"Our long-term objective is to capture more of the value chain in Uganda through the production of upgraded graphite products, including spheronised purified graphite and expandable graphite. The selected site provides access to key infrastructure, including hydro-linked power and water, and gives us the land footprint required to develop downstream capacity in phases as demand and commercial agreements progress. This is strategically important for Blencowe, for Orom-Cross and for Uganda. In-country beneficiation has the potential to support higher-value product sales, local skills development, industrial growth and stronger alignment with Western markets actively seeking secure, scalable non-China graphite supply."
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Beneficiation is an important aspect of Blencowe’s value-added proposition at Orom-Cross. Taking graphite production further up the value chain will benefit both Blencowe’s profit and loss account and Uganda’s wider economy, a win-win. Good to see solid progress in this direction.