{"id":4626,"date":"2017-12-14T21:06:02","date_gmt":"2017-12-15T02:06:02","guid":{"rendered":"http:\/\/www.cusjc.ca\/ottawainsight\/?p=4626"},"modified":"2017-12-14T21:06:02","modified_gmt":"2017-12-15T02:06:02","slug":"building-a-mine-northern-graphites-frustrating-tale","status":"publish","type":"post","link":"https:\/\/www.cusjc.ca\/ottawainsight\/?p=4626","title":{"rendered":"Building a mine: Northern Graphite’s frustrating tale"},"content":{"rendered":"

Ottawa junior mining company Northern Graphite is still on the long winding road to be first to build a working graphite mine in Ontario in more than 25 years. <\/span><\/p>\n

The company\u2019s press releases tell all: every year, CEO Gregory Bowes says construction of its open-pit graphite mine is around the bend. Northern Graphite, created in 2002, owns the Bissett Creek Project, a 2,967-hectare property approximately three hours northwest from Ottawa. <\/span><\/p>\n

In 2010, Northern Graphite released a statement which said Bowes hoped to break ground within a year and a half. In 2011, Bowes announced he was hoping to start building in the first part of 2012. In 2012, same thing: following a feasibility study, which would only take six months, construction could finally start. In 2013, Bowes made the assertion 2014 would be the year. Construction is still pending.<\/span><\/p>\n

The company still needs to finalize permits, and raise $101.6 million, including a $9.3 million contingency. On Nov. 2, it announced its plans to complete a private placement of 3.33 million shares to bring in $1.5 million. Costs fluctuate from year to year, as the company conducts tests, hires consultants, or purchases equipment. Northern Graphite hired three consultants in 2016. It also spent more money in its most recent quarter, with its losses increasing to $186,107 from $169,549. As of Sept. 30, Northern Graphite has spent $11.9 million on exploration and evaluation of the Bissett Creek site since 2009.
\n<\/span><\/p>\n

Ontario’s graphite potential<\/h3>\n

Northern Graphite says there\u2019s great potential for graphite mining in Ontario and it will be able to offer a good alternative in the graphite mining market, currently dominated by China. Western graphite producers were put out of business in the 1990s, with the rise of China\u2019s presence in the market.<\/span><\/p>\n

\"\"<\/a>
Graphite has many more uses than just pencils. (Neville Nel photo)<\/figcaption><\/figure>\n

Graphite is a crystalline carbon which can resist extreme heat, and doesn\u2019t react in contact with most materials. It\u2019s useful for lithium-ion batteries used in electric cars and is in much greater demand than before. In 2012, prices peaked, but since then, prices have dropped 50 per cent.<\/span><\/p>\n

The company says the high quality and characteristics of its large-flake graphite sets it apart, as graphite is evaluated and marketed on its flake size, purity and other properties. <\/span><\/p>\n

Experts in mining engineering and geology say the future dominant source of graphite supply will not be in Canada, though Ontario does have mining potential. If American car manufacturers such as Tesla request local supply, then Northern Graphite has an advantage, says Andr\u00e9 Tessier, geologist with Ontario\u2019s Ministry of Northern Development and Mines (MNDM). <\/span><\/p>\n

\u201cA lot of these battery suppliers like to get local supply of graphite,\u201d he says.<\/span><\/p>\n

The importance of purity<\/h3>\n

There are three different ways to purify graphite, which adds value, and Northern Graphite is seeking a higher purity for its graphite. <\/span><\/p>\n

\u201cThat\u2019s where your price for the product can go up thousands of dollars per tonne,\u201d says Tessier. <\/span><\/p>\n

Junior exploration companies competing with Northern Graphite in Ontario include Ontario Graphite, located in Kearney, and Zenyatta, based in Thunder Bay. <\/span><\/p>\n

\u201cIt\u2019s almost like they\u2019re not in competition for mining. They\u2019re in competition to prove up the best deposit for the highest grade and the best quality of graphite,\u201d says Peter LeBaron, another geologist with MNDM.<\/span><\/p>\n

\"Graphote<\/a>
Graphite can have the properties of sand.<\/figcaption><\/figure>\n

In 2011, Northern Graphite was focused on developing a graphene product, a thin lattice used for display screens on electric circuits and solar cells, among others. On Sept.14 2017, Northern Graphite\u2019s focus shifted when it announced its intention to upgrade graphite concentrates into spherical graphite and expandable graphite. Spherical graphite is found in the anode for lithium-ion batteries and expandable graphite has various uses.<\/span><\/p>\n

Mining in the 19th century<\/h3>\n

In the mid-1890s, graphite was produced at the Black Donald Mines in the township of Madawaska, which is about two hours and a half west of Ottawa. The graphite was mined for lead pencils, stove polish, metallic paints and lubricant for heavy machinery. The mines were abandoned in the 1950s. It was a different time, though Ontario Graphite produced in the mid-1980s for a short time.<\/span><\/p>\n

\u201cThere\u2019s a lot more competition in the world now,\u201d says LeBaron.\u00a0 <\/span>\u201cThat\u2019s going to be a little more difficult to overcome.\u201d <\/span><\/p>\n

Boyd Davis, consultant with Kingston Process Metallurgy, is blunt in his assessment of graphite demand in Ontario. \u201cThere\u2019s no demand for graphite in Ontario,\u201d he says. <\/span><\/p>\n

Junior mining companies like Northern Graphite are a big investment risk, and offer no guarantee, he says. Building a mine is a naturally lengthy and expensive process.<\/span><\/p>\n

Slow provincial approvals<\/h3>\n

Bowes expressed frustration in an earlier press release for the time it took MNDM to review a mine closure plan. He argued Bissett Creek is a \u201crelatively benign operation with no major environment issues,\u201d struggling to see why a 45-day approval process took seven months instead.<\/span><\/p>\n

\u201cThere\u2019s not only permitting but there\u2019s also very stringent environmental process that needs to be adhered to,\u201d says Tessier. <\/span><\/p>\n

Graphite mining creates great environmental concern, especially in China. China\u2019s graphite industry uses a hydrogen fluoride solution to purify graphite, which is a dangerous industrial chemical. In May 2017, the country announced it would try to reduce smog and emissions by closing some open-pit mines. However, it\u2019s unclear to what extent and how its graphite production will be affected by those changes. <\/span><\/p>\n

Even if China\u2019s production is set back, there are other global players larger than Canada. <\/span><\/p>\n

Syrah Resources, a mining company located in Mozambique, might become the next largest graphite mine. LeBaron explained the Mozambique deposit has one billion tonnes of potential, whereas Northern Graphite only has 69.9 million tonnes.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

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