Blencowe signs offtake agreement with major SPG player for additional graphite sales
Blencowe Resources PLC () has signed an additional non-binding offtake agreement with Qingdao TaiDa Carbon Co Ltd (TaiDa), a company based in Qingdao, China for natural fine flake concentrate offtake from the Orom-Cross graphite project in Uganda.
TaiDa is one of the largest producers of uncoated spheronised purified graphite in the world.
The agreement calls for Blencowe to supply an initial 5,000 tonnes per year of 96% graphite concentrate for three years, with potential extension and expansion thereafter.
The agreement covers 50% of phase 1 of production of 10,000 tonnes per year, targeted from 2026.
It follows successful test work and over 18 months of bulk sample processing by TaiDa to validate Orom-Cross graphite quality.
The pricing will be agreed when the agreement becomes binding, following the completion of the company’s definitive feasibility study for Orom-Cross and the subsequent financing.
All offtake to TaiDa will initially be processed in China prior to being exported to TaiDa's downstream relationships. Supply through to non-China markets may attract a price premium for Orom-Cross concentrate sales.
The 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 world graphite markets.
Following a successful US, UK and Asia marketing trip, Blencowe continues positive discussions with several other potential offtake customers for the balance of its planned annual production.
Blencowe is also in discussions in the USA and the UK with other OEMs and leading downstream processors regarding both large and smaller flake products. 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.
“Our focus has been clear: secure offtake agreements that enable us to fully cover initial Phase 1 production at Orom-Cross — and we’re delivering," said Blencowe’s executive chairman Cameron Pearce.
“These discussions have gone better than expected, which has allowed us to scale up P1 production to double the levels we had originally estimated. Ultimately Orom-Cross is not constrained by what it can produce but by what is can sell, and especially into non-China markets which are more lucrative
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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 JV partner, Mitsubishi Chemicals, and tier one other international buyers. More than 80% of TaiDa’s output is currently sold overseas into Asian and European markets. It’s a major tick in the box for Blencowe to get them on board.
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