Wedoany.com Report-Apr. 13, Blencowe Resources, a UK-based mining company, has entered into a non-binding offtake agreement (NBA) with Qingdao TaiDa Carbon, a graphite firm based in China, for natural fine flake graphite concentrate from its Orom-Cross project in Uganda. Under the deal, TaiDa will purchase 5,000 tonnes per year (tpa) of 96% graphite concentrate for an initial three-year term starting in 2026, with the possibility of renewal.

All graphite concentrate supplied to TaiDa will be processed in China before being exported to its extensive downstream network.

The agreement follows 18 months of thorough product testing, including two bulk sample programs, after which Blencowe’s senior team finalized negotiations with TaiDa. The graphite concentrate will be processed in China and then distributed through TaiDa’s extensive downstream network.

This partnership also supports Blencowe’s plans to set up a spherical purified graphite (SPG) facility in Uganda, aiming to retain more value locally by lowering costs and accessing downstream market profits. The TaiDa deal covers 50% of Orom-Cross’s phase one production goal of 10,000 tpa.

As Blencowe advances its definitive feasibility study and nears production, it is exploring further offtake deals and potential increases beyond the initial 10,000 tpa. Cameron Pearce, executive chairman of Blencowe Resources, stated: “Our focus has been clear: secure offtake agreements that enable us to fully cover initial 10,000tpa Phase 1 production at Orom-Cross – and we are delivering. Offtake discussions to date have gone better than expected. With this TaiDa agreement adding to other NBAs 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.”

Blencowe is also in talks with potential buyers in the US and UK, including original equipment manufacturers and downstream processors, for both large and small flake graphite products. Testing with various firms continues as the company works to ensure full sales coverage for its phase one output, currently set at 10,000 tpa, comprising about 5,500 tpa of small flake and 4,500 tpa of large flake products.

Other significant agreements include an NBA with Jilin for up to 15,000 tpa of large flake concentrate and an NBA with Apollo for 250 tpa of 99.95% purified graphite. In September 2024, Blencowe signed a memorandum of understanding with Triessence and an Asian SPG producer to collaborate on a graphite beneficiation plant near Orom-Cross, further supporting its growth strategy.

This progress positions Blencowe to meet its initial production targets while laying the groundwork for future expansion in the graphite market.