Mineral Commodities (ASX: MRC) has recommenced primary drilling and ore production at the Skaland Graphite AS operations in Norway following a mechanical failure of the primary ore production drill rig.
A rental drill rig has been sourced and commissioned at Skaland to replace the primary ore production drill rig (Tamrock Data Solo 1020) that suffered in-service failure in September 2023. As previously reported, the Skaland owned rig was originally built in 2002 and is approaching the end of its useful life.
Recommencement of drilling is approximately one week ahead of initial estimate of mid- October 2023.
The rental drill rig, while currently operational and performing, is also an older rig and the company is continuing to consider options to replace the current rental rig with a new or more recently built second hand unit. A decision is expected on longer term solution as part of the upcoming 2024 budget planning cycle.
Recommencement of Sales of Graphite
Now that the rental drill rig is settling into operations, ore production has recommenced and the process plant is expected to begin producing finished product in coming days. The first shipment of graphite by barge ex Skaland is expected late October / early November 2023.
The company previously estimated a negative impact to cash flows of approximately US$0.6 million – US$0.9 million depending on the timing of delivery of the rental machine. A revised
I visited Skaland during September 2023 to better understand the business, assets and operations. I was very impressed with the grade and geotechnical stability of the deposit,” Chief Executive Officer, Scott Lowe, said.
“While there is work to do to improve plant and equipment reliability and replace aging machinery, I am very optimistic about the future for Skaland as part of the company’s attractive battery mineral assets.
“Together with our Tormin Mineral Sands business in South Africa, I believe the company’s quality of assets set it apart from other junior companies in this space, and position it well for future value growth.”
