Active Anode Materials Plant

Analysis of Skaland’s current markets, the growth drivers for graphite consumption and the European positioning with respect to electric vehicles confirms that Skaland, as a permitted and operating mine in Europe, has substantial advantages as a provider of anode materials to the emerging demand from European manufacturers of lithium-ion batteries.

Skaland has fourteen years of operations at the Traelen mine and multi-decade operations at the previous mine, which significantly derisks potential mining and processing risks, which can be significant for new graphite mining projects. Access to low-cost, hydroelectric power, together with the high ore grades at the Traelen mine, further positions Skaland Graphite AS as a low carbon footprint operation.

Downstream value-added products such as expandable graphite, high-purity micronised fines and anode materials are higher priced (USD 1,000/t – USD 14,500/t).

Consequently, an anode based downstream strategy has the potential to significantly increase pricing, leveraging the operating Skaland asset for market entry and reduced risks.

Factors such as Norway’s low-cost renewable energy and proximity to market (localisation), coupled with the Company’s existing environmentally friendly, non-hydrofluoric acid (“HF”) purification process means that MRC’s anode material will have a competitive cost of production and low carbon footprint. Currently, 100% of global production of natural spherical graphite comes from China, so the Company believes that the anode material produced in Norway will offer European end-users much needed diversification of supply.

Pre-Feasibility Study

MRC has recently completed a PFS, evaluating the potential to produce downstream value-adding products from its Skaland Graphite Operations in Norway and its Munglinup Graphite Project in Western Australia.

The integrated study incorporates Skaland LOM planning, the Munglinup DFS and the metallurgical, processing, engineering and costs estimation for the AAMP at PFS level of +/- 25% accuracy.

The key project metrics for the integrated study comprise investigating two alternative environmentally friendly methods of purification, a caustic process and a carbochlorination process, that do no use HF.

The project targets production of spherical graphite battery anode material and high-purity fines in an AAMP to optimise the value of MRC’s graphite assets.

The key physical metrics for the integrated AAMP PFS are summarised in the table below.