Federal government investing $6.2M in Northern Graphite

Northern Graphite Corporation is receiving a repayable contribution of up to $6.225 million from the Canadian government to support the extension of the company’s Lac des Îles (LDI) graphite mine in Quebec.

The funding, provided through Natural Resources Canada and the Economic Development Agency of Canada for Quebec Regions, will reportedly cover 75 per cent of eligible costs for the pit extension. LDI currently produces approximately 15,000 tonnes of graphite concentrate annually, with installed capacity of 25,000 tonnes.

In a press release issued Aug. 26, Northern Graphite stated that the funding will prevent the LDI mine from going into care and maintenance at the end of 2025, allowing the company to begin work immediately on extending the existing pit. Construction is expected to start shortly, with production from the new zones anticipated within six to eight months.

“We are thrilled to receive this foundational support from the Canadian government, which will help keep the mine in operation and continuing to supply our loyal customer base in industrial markets as well as to pursue our goal of becoming a key supplier to growing defence and battery markets in North America and further afield,” said Northern Chief Executive Officer Hugues Jacquemin.

While development work gets underway, Northern says it will continue to meet customer demand by processing ore from the existing pit and stockpiles through the third quarter, followed by order fulfillment from inventory.

“Our government is committed to investing in our industries, which will build a strong and secure economy. This investment in Northern Graphite’s operations in Lac-des-Îles will strengthen Canada’s domestic critical mineral supply chains, while positioning us as a global leader in the sector. This project will have tangible economic impacts for Quebec workers and our communities,” said The Honourable Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions.

Jacquemin added that the company is “in conversations with other parties to finance the remaining cost of the mine extension.”

The pit extension is based on the LDI resource estimate published in January 2024, which indicates potential to extend the mine’s life. It also supports Northern’s plan to meet rising demand by transitioning the LDI mill to a permanent seven-day-per-week operation, targeting annual nameplate capacity of 25,000 tonnes.