MRC completes Skaland buy

CBC Metal Time:Oct 08, 2019 16:28 Source:miningweekly

Diversified metals developer Mineral Commodities (MRC) has completed the acquisition of Skaland Graphite AS, which owns and operates the Trælen mine and the Skaland processing plant, in Norway.

MRC in April this year struck an agreement to acquire Skaland, consisting of an initial cash consideration of $4.5-million and a further $4.2-million to be paid over a five-year period.

The acquisition was funded from existing cash reserves.

MRC on Monday said that full control of Skaland was taken at the end of last week, with the company also taking over marketing all product produced from the company’s operations.

“The acquisition of Skaland has fast-tracked MRC to be the largest graphite miner in Europe. Skaland offers excellent geostrategic positioning to capitalise on the fastest growing electric vehicle market globally,” said executive chairperson Mark Caruso.

“The company has already evaluated several opportunities to optimise the current operation that will improve the concentrate quality before increasing production.

“The company is progressing downstream processing, value adding initiatives and is intending to move to producing battery anode material in the near term.”

The Trælen operation produces around 10 000 t/y of graphite concentrate, with an average feed grade of 28% carbon. The mine has been operational since 2007.

Skaland accounts for around 2% of global annual natural flake graphite production, and is the largest flake graphite producer in Europe, and the fourth largest outside of China. 

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