Northern Graphite (TSXV: NGC) has secured C$6.225 million from the Canadian government to extend operations at its Lac des Îles (LDI) graphite mine in Quebec, the only graphite producer in North America. This funding helps mitigate operational uncertainty caused by a slowdown in the global electric vehicle market and falling battery metal prices. Earlier this year, Northern Graphite warned of a potential mine closure by year-end unless C$10 million was raised for expansion.
Located 150 km northwest of Montreal, the LDI mine has provided industrial clients with 12,000 tonnes of graphite concentrates last year, with plans to boost annual output to 25,000 tonnes through a new pit extension. This funding, delivered through Natural Resources Canada, is expected to cover 75% of eligible costs for the expansion project.
The pit extension, based on an estimated resource of 3.3 million indicated tonnes at an average grade of 6.4% graphitic carbon, aims to begin production in 6-8 months. Minister of Energy and Natural Resources Tim Hodgson emphasized the investment will enhance mineral production and strengthen the economy while preserving jobs in Quebec.
