Northern Graphite Corporation is targeting a late 2027 restart of production at its Okanjande graphite mine in Namibia as it positions the operation to supply a planned US$200 million (about N$3.28 billion) battery anode material (BAM) plant in Saudi Arabia.
The Canadian mining company said the restart, which remains subject to securing financing, forms part of its strategy to establish an integrated graphite supply chain outside China to meet growing demand from the electric vehicle battery industry.
Chief Executive Officer Hugues Jacquemin said the company reached a key milestone in June by relocating processing plant equipment to the Okanjande site ahead of the planned restart.
“In June we completed the relocation of our processing plant equipment to the Okanjande site in a first step toward the planned restart of production in late 2027, subject to financing. Over the coming months we expect to complete a final feasibility study at Yanbu, followed by a final investment decision by the end of the year and construction anticipated to begin in early 2027,” Jacquemin said.
The restart is supported by Northern Graphite’s recently announced joint venture with Saudi Arabia’s Obeikan Investment Group to develop a US$200 million battery anode material facility in Yanbu.
Under the agreement, the Yanbu plant will source up to 50,000 tonnes of graphite concentrate annually from Okanjande, providing the Namibian mine with a long-term offtake agreement and a guaranteed market for future production.
Northern Graphite said the project is expected to become one of the first large-scale battery anode material production facilities outside China, strengthening Western supply chains for critical battery minerals.
The company said it is developing an integrated graphite business linking mining operations in Namibia and Canada with downstream processing facilities in Europe and the Middle East as governments and manufacturers seek alternative sources of battery materials amid rising geopolitical tensions.
“While the global graphite market continues to face challenges and investor sentiment toward the sector remains fragile, our focus remains firmly on execution, disciplined capital allocation and creating long-term value for shareholders,” Jacquemin said.
Northern also reported strengthening its financial position over the past year after securing up to US$6.225 million in government funding for its Lac des Iles mine in Canada, raising US$4.8 million through an equity issue and generating approximately US$9.1 million through technology licensing, patent transactions and other activities within its Battery Materials Group.
The company further restructured its balance sheet by eliminating approximately US$22 million in senior secured debt and accrued interest through an agreement with funds managed by Sprott Resource Streaming and Royalty Corp., which has become Northern Graphite’s largest shareholder with a stake of about 9.9%.
