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Mineral Commodities ready to ramp up Norway graphite production

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High-grade graphite lodes within Mineral Commodities Traelen mine in Norway.
Camera IconHigh-grade graphite lodes within Mineral Commodities Traelen mine in Norway. Credit: File

ASX-listed Mineral Commodities has initiated decline mining at its Traelen graphite operation in Norway as it looks to build concentrate production from Skaland, one of the world’s significant natural flake graphite sources, from the current 10,000 tonnes per annum up to 16,000tpa by 2023. Exploration drilling to grow the resource base and deliver a maiden ore reserve for Traelen has also commenced.

Mineral Commodities acquired a 90 per cent stake in Skaland in 2019 and has since defined a 1.78 million tonne resource going at 22 per cent total graphitic carbon, for an impressive 397,000 tonnes of contained graphite.

Mining at the project can be traced back to 1917 from the Skaland mine adjacent to the company’s processing facilities. Since 2007 production has shifted to the nearby Traelen mine with graphite ore extracted in a bottom-up sequence within the host mountain.

New down-dip mining will allow for access to graphite from beneath mined out resources for the first time. It will support continued processing operations at Skaland as Mineral Commodities looks to bump up production.

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The Skaland processing plant currently operates at 60 per cent capacity with an increase to 85 per cent utilisation rate required to reach the 16,000 tonne per annum concentrate production being targeted by 2023.

In the longer term the company aspires to grow production beyond the 16,000 tonnes per annum and has initiated a pre-feasibility to gauge the potential for further expansion.

The commencement of decline mining represents a new chapter in the life of Traelen mining operations, which until now have been following the graphite ore up the mountain. It not only supports continued processing operations at Skaland, but also our exploration and infill drilling program targeting the delivery of an expanded resource base and the first mineral reserve estimate for Traelen in the coming months. In parallel, we are progressing metallurgical testwork to support an expansion of production at Skaland with the delivery of a PFS in early Q4.

Mineral Commodities’ acting Chief Executive Officer, Russell Tipper

The deposit is believed to be open beneath planned down-dip development levels. Mineral Commodities has also identified further mineralised lenses that warrant drill testing.

Exploration and infill drilling has now commenced as the company looks to deliver a mineral resource update and a maiden ore reserve statement for Traelen in the coming months.

Traelen is already the world’s highest grade operating flake graphite mine with mill feed averaging some 28 per cent total graphitic carbon.

Mineral Commodities wants to become one of the largest producers of battery-grade graphite outside of China and a key supplier of anode material into the hot European battery manufacturing space.

It is currently increasing investment in a cornerstone operating asset that has the long-term market credentials and supporting infrastructure that many of its peers do not.

Is your ASX-listed company doing something interesting? Contact: matt.birney@wanews.com.au

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