Date: 20 February
2025
Blencowe Resources
Plc
("Blencowe" or the
"Company")
Hydropower Study Confirms
Sustainable, Low-Cost Power Supply for Orom-Cross
Advancing Towards a Net-Zero Graphite
Operation
Blencowe Resources Plc (LSE: BRES) is pleased
to announce the completion of an initial hydropower study for its
Orom-Cross Graphite Project in Uganda. The study confirms the
availability of abundant, low-cost, and renewable hydropower from
the Ugandan national grid, providing a strategic advantage for the
Project's future mining and processing operations. This marks a
major step towards Blencowe's commitment to sustainability and its
ambition to deliver a net-zero graphite operation.
Key
Findings of the Hydropower Study
·
Plentiful renewable
energy: Two high-capacity power transmission
spurs extend to the regional grid near to Orom-Cross, one from the
Bujagali Hydroelectric Dam in Jinga and the other from the Isimba
Hydroelectric Dam, both located on the Nile River. This ensures a
reliable supply of renewable energy to Orom-Cross, including
redundancy.
·
Low Cost
Advantage: Uganda's hydropower tariffs are
significantly lower than regional African comparisons, positioning
Orom-Cross as one of the lowest-cost graphite producers
globally.
·
Ample
Capacity: Uganda currently has over 1,000 MW of
installed hydropower capacity, with additional hydro-projects
underway. Orom-Cross's power demand of 12MW (Phase 2) rising to
40MW at full production can be comfortably accommodated.
·
Advancing towards Power
Purchase Agreement (PPA): The Company is now
working towards securing a long-term PPA with Uganda Electricity
Transmission Company Limited (UETCL) to formalise the supply of
low-cost hydroelectricity for the Project.
·
Net-zero
Potential: Access to 100% renewable energy for
strengthens Blencowe's ability to achieve net-zero production,
making Orom-Cross one of the most environmentally responsible
graphite projects globally, a critical factor for funding providers
and offtake partners in Europe and North America.
Strategic
Importance of Hydropower for Orom-Cross
Reliable, green, and cost-effective energy is a
major advantage as Blencowe moves towards first production in 2026.
Orom-Cross will require 12MW for Phase 2 commercial scale
production, scaling to 40MW at full ramp up, making power a
critical cost factor. The study reinforces confidence that
Orom-Cross can operate with one of the lowest carbon footprints in
the graphite sector, aligning with global ESG and sustainability
standards.
Hydropower access strengthens Blencowe's appeal
to OEMs, battery manufacturers, and critical mineral end-users
seeking to secure sustainable supply chains. It also enhances
discussions with potential offtake and funding
partners, particularly in Europe and North America where securing
non-China supply is a priority.
Downstream
Beneficiation
A key differentiator for Orom-Cross is
Blencowe's plan to develop a beneficiation facility near the Karuma
Power Station, (190kms from site) in partnership with one of the
most world's leading SPG producers ("SPG Partner"). This
facility will upgrade 96% small fines graphite concentrate to
99.95% SPG (spheronised purified graphite) significantly increasing
value and returns.
A low-cost,
high-capacity power source is essential for this
process. Blencowe intends to leverage its SPG Partner's
proven thermal purification technology which requires considerable
energy. This technology eliminates the need for acid leaching
and avoids associated environmental concerns.
The
availability of abundant, cost-effective hydropower makes
this downstream processing strategy viable and highly
competitive, reinforcing Orom-Cross's position
ahead as a premier graphite supplier.
Next
Steps
Blencowe will continue discussions with UETCL
and the Ugandan Government to finalise a PPA and integrate
renewable energy planning into the ongoing Definitive Feasibility
Study (DFS). Additional studies will be conducted to assess
potential power demand scenarios as Orom-Cross scales up
production.
Executive Chairman Cameron Pearce commented:
"Access to
abundant, low-cost hydropower directly from Uganda's national grid
represents a major strategic advantage for Orom-Cross. This will
enable us to operate sustainably with one of the lowest carbon
footprints in the graphite sector while keeping production costs
highly competitive."
"We are
committed to building one of the world's most ESG-friendly graphite
projects, and securing clean energy is a critical milestone towards
that goal. With work now progressing to formalise a PPA, we are
securing ensuring a long-term, sustainable power solution that
aligns with our development timeline."
Conclusion
The integration of hydropower into the
Orom-Cross development plan underscores Blencowe's strategic vision
to establish a low-cost, high-purity, and net-zero graphite
operation. As the Company advances its DFS and project financing
discussions, securing sustainable energy further enhances
Orom-Cross's appeal to global investors, end-users
Blencowe remains focused on delivering a
world-class graphite project with industry-leading sustainability
credentials and looks forward to providing further updates as the
PPA process advances.
Figure 1: Isimba Hydroelectric
Power Station, Uganda
For further information please
contact:
Twitter https://twitter.com/BlencoweRes
LinkedIn https://www.linkedin.com/company/72382491/admin/
Background
Orom-Cross Graphite
Project
Orom-Cross is a potential world class graphite
project both by size and end-product quality, with a high component
of more valuable larger coarse flakes within the
deposit.
A 21-year Mining Licence for the project was
issued by the Ugandan Government in 2019 following extensive
historical work on the deposit. Blencowe completed a
successful Pre-Feasibility Study on the Project in July 2022 and is
now within the Definitive Feasibility Study phase as it drives
towards first production.
Orom-Cross presents as a large, shallow
open-pitable deposit, with an initial JORC Indicated & Inferred
Mineral Resource of 24.5Mt @ 6.0% TGC (Total Graphite Content).
This Resource has been defined from only ~2% of the total tenement
area which presents considerable upside potential ahead.
Development of the resource is expected to benefit from a low strip
ratio and free dig operations together with abundant inexpensive
hydro-electric power off the national grid, thereby ensuring low
operating costs. With all major infrastructure available at
or near to site the capital costs will also be relatively low in
comparison to most graphite peers.
In 3Q 2024 Blencowe introduced a Joint Venture
concept with experienced downstream graphite processing partners to
ultimately produce upgraded 99.95% SPG in Uganda. This
strategy has several key advantages plus substantial cost savings
which will assist deliver a world class project once DFS is
completed.
