Blencowe selects site for downstream processing operations in Uganda

London-listed Blencowe Resources has selected the preferred site for the future downstream operations associated with its Orom-Cross graphite project, in Uganda.

Following an extensive search and evaluation process, the company has secured, by way of an option to buy, a site of 100 acres located about 35 km north of Gulu in northern Uganda, as the future base for downstream processing operations to further beneficiate its graphite concentrate into purified products.

The agreed purchase price for the site is $70 000, with a 30% down payment payable to secure the option.

The option runs for an initial six-month period, with a further three-month extension available.

Blencowe says it considers the cost to be modest and aligned with its staged downstream development strategy.

It says the infrastructure surrounding the site is particularly strong, with direct access to a large modern electrical substation connected to Uganda’s hydroelectric power network, including generation from the Karuma Falls hydropower station, as well as access to a permanent water source.

Downstream beneficiation requires reliable and cost-competitive energy and the company believes the selected location provides an optimal platform to support a low operating cost profile as downstream capacity is developed, it says.

The scale of this site supports future anticipated growth as both Orom-Cross and the beneficiation facility ramp up together.

Site selection is consistent with previously announced planned downstream development strategy and ongoing engineering work.

The planned downstream facility is expected to support Blencowe’s long-term strategy to move beyond graphite concentrate sales into higher-value upgraded graphite products, including spheronised graphite and expandable graphite.

These product pathways form a central part of the company’s strategy to increase product optionality, improve realised pricing and position Orom-Cross within Western supply chains seeking scalable, non-China graphite supply, it avers.

Blencowe is now progressing the environmental- and social-impact assessment for the site and confirming infrastructure costings.

“Securing a preferred downstream processing site near Gulu is an important step in Blencowe’s strategy to build Orom-Cross into more than a conventional graphite concentrate project,” executive chairperson Cameron Pearce says.

“Our long-term objective is to capture more of the value chain in Uganda through the production of upgraded graphite products, including spheronised purified graphite and expandable graphite.

“The selected site provides access to key infrastructure, including hydro-linked power and water, and gives us the land footprint required to develop downstream capacity in phases as demand and commercial agreements progress,” he explains.

“This is strategically important for Blencowe, for Orom-Cross and for Uganda. In-country beneficiation has the potential to support higher-value product sales, local skills development, industrial growth and stronger alignment with Western markets actively seeking secure, scalable non-China graphite supply,” Pearce adds.