Northern Graphite is evaluating options to fund the Okanjande project through royalty, stream or debt structure with equity contributed by a strategic partner.
The Okanjande project comprises the Okorusu fluorspar processing plant and the Okanjande graphite deposit. The graphite deposit is about 20 km south of Otjiwarongo in the Otjozondjupa region, while the Okorusu processing plant is about 78km from Okanjande and 60km from Otjiwarongo town.
The Okanjande project has been under care and maintenance since the third quarter of 2023 to reduce costs.
Northern Graphite kept the engineering department and those involved in moving the Okorusu plant to Okanjande.
Presently, Northern Graphite says the timing of a restart is subject to the availability of project financing.
The company, however, says a full developmental schedule can be executed within 12 to 14 months once financing is available, with the intent to resume production in 2025.
In August 2023, Northern Graphite published the results of a new pre-economic assessment that evaluated moving the processing plant for its Namibian operations.
The assessment recommended that the Okorusu Fluorspar plant be relocated to Okanjande rather than the mill being rehabilitated in its current location.
According to the assessment, it makes economic sense to relocate the mill, which would involve higher capital costs but lower operating costs.
The relocation would also reduce greenhouse gas emissions and improve sustainability and the project’s expansion potential.
In terms of figures, the assessment indicated an average annual production of 31.000 tonnes of graphite concentrate that could be sold in the US and Europe.
The production costs would be US$666 per tonne, a post-tax IRR of 36%, a post-tax NPV of US$70 million and a payback of under four years.
These results were based on a 10-year mine life and a weighted average graphite price of US$1.550 per tonne.
Northern Graphite CEO Hugues Jacquemin said 2023 was the company’s first year in operation since acquiring the Lac des Iles and Okanjande mining assets from Imerys.
Jaquemin described 2023 as a transformative year for the Northern Graphite.
“We successfully integrated the Lc de Iles mine and Okanjande project into the company and optimised working capital to generate the cash we needed to advance our strategy, with minimal dilution to shareholders.
“Over the course of 2023, we saw sales rebound and progressed our four main growth catalysts, expanding our resource base at Lac des Iles, moving Okanjande closer to a construction decision, advancing our battery materials technology capabilities and progressing our plans to build a battery materials facility in Baie-Comeau,” he said.
Okanjande history
Rössing Uranium Limited discovered the graphite deposit in 1990. The company conducted topographic and aerial surveys, drilling, metallurgical testing, and bulk sampling and constructed and operated a pilot plant on-site until 1993.
Ten years later, a Belgian company, Solvay SA, took over until 2010 but did not develop the project.
Gecko Namibia came in in 2010 to complete bulk sampling, mapping, soil sampling, pitting, geophysical surveys, a topographic survey, a re-assessment of historical drilling, and drilling.
The French company, Imerys Group, through its subsidiary Imerys Graphite and Carbon, formed a joint venture with Gecko Namibia in early 2016 to develop the Okanjande site. The joint venture was called Imerys Gecko Graphite (Namibia) (Pty).
The Okanjande mine operated from August 2017 until October 2018, when it went under care and maintenance. Northern Graphite acquired the project in 2022.
