By Anita Parlow, special to AJOT
The Alaska Journal of Commerce recently reported that the potential for the newly developing graphite mine, 40 miles north of Nome in the Kigluaik Mountains, holds some 92 million metric tons of ore at an average grade of about 8- 20 percent graphite, so contiguous, according to the Vancouver-based mining company producers of Graphite One, that “it looks like an oversized pencil lead.”
World production of graphite in 2016 was some 1,200,000 tons, with China being the major exporter. None is mined in the United States. If developed, the Alaska-based graphite mine would become the sole domestic source of graphite – high grade Spherical Coated Graphite (CSG.) China currently controls most of the world’s supply of the strategic mineral that provides the total consumption by the United States. Most of the demand is for lithium ion batteries for use in electric vehicles. As lithium ion batteries contain 10-30 times more graphite than lithium, the mine would offer a primary component for energy storage and other strategically important materials that would both diminish US reliance on international suppliers, and, instead, become a net exporter.
Last year, the White House and Department of Defense (DOD) report highlighted the importance of the mineral to the nation’s security and the broader manufacturing sector. The previous year, in 2017, President Trump issued Executive Order 13817, a Federal Strategy to Ensure Secure and Reliable Sources of Critical Minerals that called upon all agencies across the federal government to develop a strategy to “reduce the nation’s vulnerability to disruptions.” The 35 minerals listed includes graphite.
According to Arctic Today, if developed, the “small open pit mine” would produce a bit more than 1 million metric tons annually, from which would be drawn 60,000 tons of graphite concentrate that would be trucked out of the mine site and exported from the Port of Nome to Washington State where it would be processed for lithium-iron batteries and other uses. The environmentally controversial project would require an all-weather access road to the port, a power plant and expanded port infrastructure.
While the City of Nome, the Nome Chamber of Commerce and the Bering Straits Native Corporation, whose Port Clarence is a contender requiring far more infrastructure development than Nome, support the graphite project, while the Alaskan state legislature declined to authorize $80 million in financing given local and other state-wide opposition.
However, as the company continues with its resource evaluation and environmental assessment, it is moving forward to become a vertically integrated graphite miner producer and manufacturer, rather than a mine operator. On the environmental questions, top management distinguished the graphite mine, “an oversized gravel pit,” from metal mines that often require chemical leaching processes.
On September 9, 2019, Graphite One Inc. announced it entered into a $4.8 million USD loan agreement with Taiga Mining Company, Inc. that is intended to fund the graphite company for its Graphite Creek Pre-Feasibility Study. Graphite CEO, Anthony Huston, noted that the unsecured loan, repayable in two years with an option to extend, is a “strong vote of confidence” that reflect the need for a new US graphite supply.
In May, Graphite One announced its pilot scale program to ship 12,000 pounds of raw graphite material to its unnamed industrial partner located in the U.S. with ties to the U.S. government and industrial and commercial industry.
Graphite One notes on its web page that it conducts its mineral explorations under the State of Alaska Annual Hardrock Exploration (AEHA) Permit that covers drilling activities, water usage, temporary camps and small land disturbances.
State of Alaska officials, including the Nome Port Director, publically testified that the port plans to play a role in both supporting the mine’s development and to export the raw materials for refining in the lower 48.
