Northern Graphite intends to resume production at the Okanjande project by the end of 2024, once finance is available.
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 deposit is within mining licence 196, valid until February 9, 2042. The licence area is 903.4 ha. The Okorusu is within mining licence 90, valid until January 8, 2030.
The Okanjande environmental compliance certificate was granted on November 11, 2021, and is valid for three years until November 11, 2024.
Ownership
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 S.A., 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.
Currently, 15 workers are on site after the retrenchment of 32 others.
The future
Northern Graphite wants to relocate the Okorusu processing plant to the Okanjande mine to eliminate the trucking cost and allow for a more sustainable operation that includes solar power and lower water consumption.
The company released a preliminary economic assessment report in August, which indicated moving the processing plant rather than rehabilitating the mill in its current location makes economic sense.
The assessment says moving the processing plant would incur high capital costs but lower operating costs.
Additionally, the assessment indicated an average annual production of 31,000 tonnes of graphite concentrate, production costs of 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.
Northern Graphite CEO Hugues Jacquemin said the economic assessment supports the company’s strategy to develop Okanjande as a competitive asset that can be used to meet the demands of our customers in years to come.
Jacquemin added: “The ability to add 31,000 tpy of production at a very reasonable capital cost creates a compelling case for the development of Okanjande.
“Okanjande has a very large resource in one of the most politically stable African countries, with easy access to a deep-water port, which provides substantial competitive advantages over most other African projects.”
“Our new mining plan at Okanjande will allow us to move quickly to serve the fast-growing market for battery anode materials and increase our ability to expand the facilities over time.”
