Titan Mining has signed a term sheet with the US Department of the Army outlining commercial terms for a long-term lease to build and operate a graphite processing facility at the Anniston Army Depot in Alabama.
The agreement would allow Titan Mining, through its subsidiary Empire State Mines, to develop the plant on roughly 97 acres of underused army land.
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The proposed lease includes an initial term of 50 years, with options for two additional 25-year renewals.
If fully exercised, the lease could provide up to 100 years of operational tenure for Titan Mining, subject to final agreement and conditions set by both parties.
According to the framework, the facility would produce value-added graphite materials, starting with purified micronised graphite (PMG) and, after customer qualification, coated spherical purified graphite (CSPG).
These products are intended to support US defence, industrial and energy supply needs.
The plan would leverage established infrastructure at the Anniston site to help expedite development.
Titan Mining president and CEO Rita Adiani said: “Agreeing to this commercial framework with the US Army is a significant milestone in Titan’s strategy to build a fully integrated American graphite supply chain.
“Developing within an existing Army installation provides important infrastructure and strategic advantages and creates a pathway to establish large-scale domestic graphite processing without having to develop an entirely new industrial site from the ground up.”
As part of the agreement, the army will hold a right of first offer to buy up to 10% of the annual production of specified graphite products, provided those products are not already committed under qualifying offtake, supply or project financing arrangements.
Any acquisition by the army would be subject to normal federal procurement rules.
The commercial structure of the proposed lease involves fair market value rent, with additional participation rent after operations commence.
Titan Mining stated that the proposed framework allows for flexibility regarding financing and adjusts for delays related to permits or regulatory issues outside the company’s control.
Further discussions and diligence are under way at other sites including Pine Bluff Arsenal in Arkansas and Fort Drum in New York.
The execution of a definitive enhanced use lease will depend on several conditions, including agreement on operational plans and necessary approvals from Titan’s Board, the army and the US Congress.
In parallel, Titan Mining continues development work at its Kilbourne Graphite Project.
In December last year, the company commenced ore feeding at its Kilbourne demonstration facility, moving the project closer to the initial production of graphite concentrate.
