Ottawa, Ontario--(Newsfile Corp. - May 17, 2024) - Northern Graphite Corporation(TSXV: NGC) (OTCQB: NGPHF) (FSE: 0NG) (XSTU: 0NG) (the "Company" or "Northern") is pleased to provide comment on the Biden Administration ruling to place a 25 percent tariff on natural graphite from China, starting in 2026, as it seeks to protect North America's nascent graphite industry.
"This is an important move by the Biden Administration and the United States Trade Representative to support the North American graphite industry," said Northern Chief Executive Officer Hugues Jacquemin. "Of course, more needs to be done, and we look forward in coming weeks to discussions with the White House as an industry about what else can be done to ensure an independent domestic graphite supply chain."
The ruling this week is designed to make local natural graphite companies more cost competitive with China and help drive North American supply chain security. It follows a decision by the Biden Administration announced on May 3 that granted Original Equipment Manufacturers ("OEMs") a two-year "transition" period to source Battery Anode Material (BAM) from China while local North American production is established. The Administration's decision requires OEMs to commit to offtake agreements with North American graphite producers in the interim, in order for their EVs to continue qualifying for a US$7,500 tax credit and so that they can source from the domestic supply chain when the two-year exemption from FEOC (Foreign Entity of Concern) requirements expires at the end of 2026.
In January, Northern published an updated mineral resource estimate at its cornerstone Lac des Iles mine that creates the potential to extend mine life by approximately eight years, to be confirmed and quantified through an updated mineral reserve estimate and life-of-mine plan that will be available later in 2024.
"This is really good news for us as we extend the life and production capacity of our Lac des Iles mine in Quebec this year and increase the availability of natural graphite for the North American market," said Mr. Jacquemin. "We are executing on our main growth catalysts and preparing the Company to be a key graphite supplier to industrial customers and Lithium-Ion battery makers as they turn to local production, and away from China, to fulfill their needs," said Mr. Jacquemin.
About Northern Graphite
Northern, the only flake graphite producing company in North America, is a Canadian, TSX Venture Exchange listed company that is focused on becoming a world leader in producing natural graphite and upgrading it into high-value products critical to the green economy, including anode material for lithium-ion batteries/EVs, fuel cells and graphene, as well as advanced industrial technologies.
Northern expects to become one of the largest natural graphite producers outside of China when its Namibian operations come back online. The Company also has the large-scale Bissett Creek project in Ontario and substantial additional measured and indicated resources in Namibia and the Mousseau property in Quebec which are expected to be sources of continued production growth in the future. All projects have "battery quality" graphite and are located close to infrastructure in politically stable jurisdictions.
This news release contains certain "forward-looking statements" within the meaning of applicable Canadian securities laws. Forward-looking statements and information are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "potential", "possible" and other similar words, or statements that certain events or conditions "may", "will", "could", or "should" occur. Forward-looking statements in this news release include statements regarding, among others, the Company's plans to extend the mine life of its LDI mine, develop its Baie-Comeau Battery Anode Material facility, intentions to restart the Okanjande mine in Namibia and development plans for its other projects including Bissett Creek. All such forward-looking statements are based on assumptions and analyses made by management based on their experience and perception of historical trends, current conditions and expected future developments, as well as other factors they believe are appropriate in the circumstances. However, these statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected including, but not limited to, unexpected changes in laws, rules or regulations, or their enforcement by applicable authorities; the failure of other parties to perform as agreed; social or labour unrest; changes in commodity prices; unexpected failure or inadequacy of infrastructure and the failure of ongoing and contemplated studies to deliver anticipated results or results that would justify and support continued studies, development or operations and the inability to raise required financing. Readers are cautioned not to place undue reliance on forward-looking information or statements.
Although the forward-looking statements contained in this news release are based on what management believes are reasonable assumptions, the Company cannot assure investors that actual results will be consistent with them. These forward-looking statements are made as of the date of this news release and are expressly qualified in their entirety by this cautionary statement. Subject to applicable securities laws, the Company does not assume any obligation to update or revise the forward-looking statements contained herein to reflect events or circumstances occurring after the date of this news release.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
