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London-listed Blencowe Resources has cemented the formidable potential of its Uganda-based Orom-Cross graphite project, transitioning it into a financing and development phase following the successful completion of a Definitive Feasibility Study (DFS). The DFS confirms the project’s capacity to be a Tier 1 global graphite producer, outlining an initial 15-year mine life based on only 2% of the total deposits drilled, with significant life-of-mine extensions expected as further resources are converted to reserves.
The study projects robust financial metrics, including a Net Present Value (NPV) of $1.09-billion and an Internal Rate of Return (IRR) of 96%, underpinned by a competitive all-in sustaining cost of $485/t over the mine’s life. Blencowe anticipates substantial earnings before interest, taxes, depreciation, and amortisation (EBITDA) potential of $230-million a year. The initial Phase 1 of development, designed to be profitable from day one and reduce financial risk, targets a fast-tracked start in the first half of 2027, producing 20,000 tonnes per annum (t/y) of concentrate.
Following the initial phase, Phase 2 is planned to commence within two years, escalating concentrate production to 70,000 t/y while simultaneously introducing downstream processing to produce 20,000 t/y of uncoated spherical purified graphite (USPG). The company’s ultimate ambition is to scale up production to 175,000 t/y of concentrate and maintain the 20,000 t/y USPG target. The downstream beneficiation facility, located near the mine, will upgrade small flake concentrate to 99.95% total graphitic carbon USPG, positioning Orom-Cross as one of the few commercial-scale, high-purity USPG producers outside of China and the first in Africa.
The required capital for Phase 1 is estimated at $40-million, with a further $120-million needed for the Phase 2 expansion, which Blencowe plans to fund entirely from internal cash flow. With nonbinding offtake agreements already secured for all planned Phase 1 production, the company is now actively engaging with development finance institutions, strategic industry partners, and government funding bodies to finalise the Phase 1 financing package, expecting it to be primarily funded through non-Blencowe equity structures.
Chairman Cameron Pearce highlighted the project’s advantageous timing, stating that demand for natural flake graphite—a non-substitutable component in lithium-ion batteries for EVs and energy storage—is forecast to tighten sharply as global decarbonisation accelerates. He asserted that Orom-Cross is exceptionally well positioned as a near-term producer, highly leveraged to rising graphite prices due to its low operating costs and ensuring strong margins. The company plans to prioritise niche and premium applications, especially once purified USPG production starts, leveraging its diverse network across Western and Asian markets.
