London-listed Blencowe Resources has signed an additional nonbinding offtake agreement (NBA) with China-based Qingdao TaiDa Carbon for natural fine flake concentrate offtake from its Orom-Cross graphite project, in Uganda.

TaiDa is one of the largest producers of uncoated spheronised purified graphite (SPG) in the world, supplying Tier 1 battery manufacturers and industrial users globally.

Following a successful US, UK and Asia marketing trip, Blencowe says it continues to hold positive discussions with several other potential offtake customers for the balance of its planned yearly production.

Blencowe says this agreement follows extensive engagement between Blencowe senior management with TaiDa and building on 18 months of successful product testing and validation as part of the two bulk sample test programmes that Blencowe has completed within the definitive feasibility study (DFS) in order to get prequalified to proceed to offtake agreements.

The company notes that TaiDa's position as a global leader in purified graphite adds further commercial credibility to Orom-Cross and paves the way for future sales to its joint venture partner, Mitsubishi Chemicals, and other Tier 1 international buyers.

Blencowe says the TaiDa offtake agreement underpins its decision to expand Orom-Cross Phase 1 production from 5 000 t/y to 10 000 t/y which it says is a critical move to ensure profitability from the outset.

All offtake to TaiDa will be processed in China prior to being exported to TaiDa's downstream relationships.

Notably, supply through to non-China markets may attract a price premium for Orom-Cross concentrate sales, says Blencowe.

Importantly, the company explains that this deal lays the groundwork for Blencowe's in-country SPG facility in Uganda, which will enable domestic purification, reduce operating costs and capture substantial downstream value where the bulk of profit is currently being made in global graphite markets.

Blencowe is also in discussions with other original-equipment manufacturers and downstream processors in the US and the UK regarding both large and smaller flake products.

Blencowe says testing by these and several other companies is underway with the company focused on securing full sales coverage for its Phase 1 production targeted for 2026.

The agreement includes supply for an initial 5 000 t/y of 96% graphite concentrate for three years, with potential extension and expansion thereafter.

The agreement also covers 50% of initial Phase 1 of production of 10 000 t/y targeted from 2026.

“Our focus has been clear: secure offtake agreements that enable us to fully cover initial 10 000 t/y Phase 1 production at Orom-Cross, and we're delivering. Offtake discussions to date have gone better than expected,” says Blencowe executive chairperson Cameron Pearce.

“With this TaiDa agreement adding to other NBA's signed to date we now have all of our Phase 1 production covered, and we are driving offtake volumes towards the next stage of growth beyond that. Importantly, this success has allowed us to double our planned initial P1 output, targeting a more profitable start to operations.

"Orom-Cross is not constrained by its ability to produce, but by what it can sell. Our phased approach is working and scaling production as determined by offtake contracts builds key relationships and lays the foundation for successful long-term growth.

"Today's announcement demonstrates the clear commercial demand for Orom-Cross and supports critical path items towards DFS completion. Importantly, we continue to make strong technical progress and remain in active discussions with strategic partners such as the US International Development Finance Corporation and the Africa Finance Corporation to finalise the broader project financing solution,” Pearce continues.