Uganda: Blencowe signs first agreement with Apollo for its Orom-Cross graphite mining

Blencowe Resources has reached a key milestone in the development of Uganda's first graphite mine, Orom-Cross, with the signing of a non-binding memorandum of understanding with Apollo Energy Systems. Based in Florida and specialising in energy storage systems using lead-acid batteries, the American company will become Blencowe's first customer in the United States, reinforcing the economic viability of this strategic project.

The agreement provides for the initial delivery of 250 tonnes per year of fine flake purified graphite for the battery industry. The concentrate, mined at Orom-Cross, will be purified in Chicago before being shipped to Apollo. Although the final price remains to be negotiated over the next 24 months, Blencowe points out that similar products currently sell for around $8,000 a tonne. "This agreement, the result of a successful marketing tour in the United States, is the first in a series that we hope to conclude in the near future," said Cameron Pearce, Executive Chairman of Blencowe.

This agreement is in addition to a previous contract signed in 2024 with Jilin, a Chinese company, to supply up to 15,000 tonnes per year of coarse flake concentrate. These commercial commitments, although non-binding for the time being, are crucial to reassure investors and facilitate the financing of the project.

Orom-Cross, which aims to exploit Africa's abundant reserves of graphite - a key material for electric vehicle batteries - is targeting initial production of 5,000 tonnes a year in phase 1. The agreement with Apollo represents only 5% of this capacity, prompting Blencowe to step up its efforts to identify new customers. Ultimately, phase 2 of the project plans to increase production to 50,000 tonnes a year, in response to growing demand for graphite, particularly from giants such as Tesla.

According to a 2022 pre-feasibility study, the development of Orom-Cross requires an initial investment of $62 million. Several lenders have already expressed interest, including the Africa Finance Corporation (AFC), which is considering a loan and a direct equity stake, according to a Blencowe press release in early March 2025. These sales agreements strengthen the credibility of the project, an asset for securing the necessary financing.

By developing Orom-Cross, Blencowe is positioning Uganda as a new player in the graphite industry, a strategic sector in the face of the global energy transition. If the project goes ahead, it could not only diversify the Ugandan economy, but also meet the growing demand for critical materials, while attracting more foreign investors to the African mining sector.