Northern Graphite spent C$2.1 million during the second quarter of 2026 on the relocation of the former Okorusu processing plant, as the Canadian miner continued preparations to bring its Namibian graphite operations back into production.
The company disclosed the expenditure in its second-quarter results released on Tuesday, saying Rotary Engineering Services of Namibia dismantled the processing plant and transported it from Okorusu for future reassembly.
Northern said the C$2.1 million expenditure related to the relocation contributed to a C$3 million net loss for the three months ended 30 June 2026, compared with a C$1 million loss during the corresponding period last year.
The increased loss also reflected a C$1.3 million increase in care and maintenance expenses and C$3.7 million in non-cash items, including foreign exchange losses, interest accretion, stock-based compensation and depreciation.
The impact was partly offset by a C$6.4 million increase in licensing and other revenue during the quarter.
Northern’s latest disclosure puts a figure to the expenditure associated with moving the processing infrastructure, after the physical relocation was completed during the second quarter.
The Okorusu processing plant originated from the former Okorusu fluorspar operation north of Otjiwarongo, which for decades produced acid-grade fluorspar before mining operations ceased.
The processing infrastructure was later adapted for graphite processing and became part of the Namibian mining assets that Northern Graphite acquired from French industrial minerals group Imerys in 2022.
Under the previous operating configuration, graphite ore was transported to the Okorusu facility for processing, separating the mining and processing operations and adding a haulage component to production costs.
Northern subsequently opted to relocate the processing equipment rather than retain that operating configuration.
The company said an August 2023 Preliminary Economic Assessment by CREO Engineering Solutions supported its decision, finding that relocating the processing plant was expected to reduce operating costs, improve sustainability and enhance the operation’s longer-term expansion potential.
The relocation involved dismantling the Okorusu equipment before transporting it to its new location for future reassembly.
Northern’s second-quarter results show the company recorded no graphite sales or mine revenue during the period, although it generated C$8.9 million in other revenue, including C$8.3 million from an agreement to transfer carbon-material processing technology to a third party.
The company ended June with C$200,000 in cash and cash equivalents, compared with C$1.1 million at the end of March.
Northern is pursuing a broader strategy to increase natural graphite production and develop downstream battery materials, with its Namibian processing infrastructure as part of those plans.
