Northern Graphite has announced that it may place its Lac des Iles mine under care and maintenance by the end of 2025 if it does not secure funding for expansion.
Lac de Iles is the only graphite-producing mine in North America and a critical supplier to US industrial customers.
Go deeper with GlobalData
The mine’s existing pit is set to be depleted, and stockpiles will be exhausted by the fourth quarter of 2025 (Q4 2025).
The company is seeking C$10m ($7.2m) to expand the Lac de Iles mine, which could extend the mine’s life by another eight years.
Following the release of a new resource estimate in Q1 2024, which indicated the potential to significantly prolong the life of the mine, the company initiated a second drilling programme in Q4 2024 with the objective of further expanding its resource base.
In Q1 of this year, the company also commenced the permitting process to extend the current pit, which, subject to financing, will facilitate continued mining once the existing pit has been fully extracted.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe updated mineral resource estimate further reinforces the transition of the processing plant at the mine to a seven-day-a-week operation to achieve a capacity of 25,000 tonnes (t) per year.
The processing plant generated 11,697t of graphite concentrate in 2024, as operations continued uninterrupted until 3 November, when both the plant and the mine underwent a temporary shutdown for maintenance and repairs.
Northern Graphite CEO Hugues Jacquemin said: “In 2024, we implemented strict cost controls to preserve cash while simultaneously expanding resources through exploration success at our cornerstone Lac des Iles (“LDI”) mine and advancing our vertical integration strategy with the launch of our battery materials division in Frankfurt. Despite geopolitical uncertainty, we sold near-record volumes and continued to broaden our market reach.
“We now have sufficient data to support an expansion of our LDI pit, which is good news considering that demand for our product continues to strengthen. But none of this will matter if we cannot secure financing to extend the pit before we run out of ore by the end of this year. We are doing everything in our power to respond, but like many in our industry, we are operating in a capital environment that remains extremely difficult.
“Without near-term access to the funding, we may be forced to place Lac des Iles, the only operating graphite mine in North America, on care and maintenance. That is not a decision we take lightly. The world needs more graphite, and Northern is positioned to deliver it, but we cannot do it alone.”
Northern Graphite has been affected by a 50% drop in graphite prices over the past year, mirroring trends in other battery metals due to slower electric vehicle sales and competitive pricing from China, reported Reuters.
China, which controls at least 70% of the graphite market, has further tightened its hold by implementing export controls on essential metals including graphite to the US.
This move by China has added to the uncertainty and risk for potential investors, according to Jacquemin.
He also noted that if the Quebec mine went under care and maintenance, Northern Graphite might not consider restarting it and could shift its focus to its other mine in Africa.
