UK-based miner Blencowe Resources has signed a new non-binding offtake agreement (NBA) with Qingdao TaiDa Carbon, a China-based graphite company, for the sale of natural fine flake graphite concentrate from its Orom-Cross graphite project in Uganda.
TaiDa will receive 5,000 tonnes per year (tpa) of 96% graphite concentrate for an initial three-year period, starting from 2026, with scope for extension.
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After an extensive product testing and validation period of 18 months, which included two bulk sample test programmes, Blencowe’s senior management successfully engaged with TaiDa.
All graphite concentrate supplied to TaiDa will be processed in China before being exported to its extensive downstream network.
Moreover, this agreement lays the foundation for Blencowe’s plans to establish an in-country spherical purified graphite (SPG) facility in Uganda.
This move aims to capture more value domestically by reducing operating costs and tapping into the profits currently being made in the downstream graphite market.
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By GlobalDataThe deal accounts for 50% of Orom-Cross’s initial phase one production target of 10,000tpa.
As the company progresses with the definitive feasibility study and moves closer to production, the potential for additional offtake partnerships and increased production levels beyond the initial 10,000tpa is being considered.
Blencowe Resources executive chairman Cameron Pearce said: “Our focus has been clear: secure offtake agreements that enable us to fully cover initial 10,000tpa Phase 1 production at Orom-Cross – and we are delivering.
“Offtake discussions to date have gone better than expected. With this TaiDa agreement adding to other NBAs signed to date we now have all of our Phase 1 [P1] production covered, and we are driving offtake volumes towards the next stage of growth beyond that. Importantly, this success has allowed us to double our planned initial P1 output, targeting a more profitable start to operations.”
In addition to the TaiDa agreement, Blencowe is engaging with other potential offtake customers in the US and UK.
Discussions with original equipment manufacturers and downstream processors are ongoing, focusing on both large and smaller flake graphite products.
With testing by various companies in progress, Blencowe is working towards securing full sales coverage for its phase one production.
Currently, Blencowe has agreements in place for the initial 10,000tpa phase one production, which includes approximately 5,500tpa of small flake products and 4,500tpa of large flake products.
Notable agreements include an NBA with Jilin for up to 15,000tpa of large flake concentrate and an NBA with Apollo for 250tpa of 99.95% purified graphite.
In September 2024, Blencowe signed a memorandum of understanding with Triessence and an Asian SPG producer to form a joint venture and build a graphite beneficiation plant near Orom-Cross.
