Northern Graphite's LDI in temporary care, maintenance

Executive Summary

• Northern Graphite has placed its Lac des Iles (LDI) mine and mill into temporary care and maintenance to address a mill bearing failure and accelerate critical maintenance ahead of the 2026 pit expansion.
• The company has halted mining operations temporarily after inadvertently mining slightly below the authorized depth of 209 meters; they are requesting a minor amendment to the certificate of authorization to mine to 203 meters, which may cause a production gap of 2-3 months.
• Phase 1 of the expansion program, which includes prestripping and could add eight years to mine life, is being financed by a $6.2-million interest-free contribution from Natural Resources Canada.

Key Details

• Equipment Issue & Maintenance: A bearing failure at the mill (a long-lead-time component) has necessitated a 4-6 week replacement window. Northern advanced maintenance projects originally scheduled for January to avoid two separate shutdowns.
• Production Impact: The combination of mill maintenance and the regulatory amendment for the current pit may result in a production gap of approximately two to three months between existing operations and production from the expanded pit.
• Regulatory & Permitting Status:
  • Phase 1 permitting requires a certificate of authorization from Quebec's MELCCFP to mine to 203 meters (above sea level). The application is in final stages and expected to be submitted by the end of the month.
  • The company is currently authorized to mine to 209 meters. Mining was halted after a small amount of material was inadvertently mined/blasted slightly below this level.
  • Phase 2 (deepening below 203m) authorization will be initiated in due course.
• Expansion Timeline: The company anticipates initiating production from the expanded pit in the second quarter of next year.
• Financing: The regional economic growth through innovation program (NRCan/CED) is financing 75% of eligible costs for the expansion program via an interest-free, repayable contribution of up to $6.2 million.
• Operational Metrics: LDI produces approximately 15,000 tonnes of graphite concentrate per year with an installed capacity of 25,000 tonnes per year. Prestripping for Phase 1 is conducted on a continuous 24-hour basis over an estimated two-month period.

Notable Quotes

• "Rather than stopping the plant now and again in January, we decided to start the maintenance program immediately in order to avoid having two separate shutdowns." — Hugues Jacquemin, CEO
• "We will be working closely with regulatory authorities to address this situation as we work to extend the life of this strategic Canadian asset and to create a secure, sustainable North American supply chain for one of the minerals most critical to meeting rapidly growing demand from regional and global battery markets." — Hugues Jacquemin, CEO