Northern Graphite Charts Path to Carbon Neutral Project at Bissett Creek
Northern Graphite Charts Path to Carbon
Neutral Project at Bissett Creek
Ottawa, Ontario--(Newsfile Corp. - February 14, 2022) - Northern Graphite Corporation
(TSXV: NGC)
(OTC Pink: NGPHF) (FSE: 0NG) (XSTU: 0NG)
(the "
Company
" or "
Northern
") is pleased to
announce that Minviro Ltd. ("Minviro") has completed an ISO-compliant Life Cycle Assessment ("LCA")
on the production of graphite concentrate and lithium-ion battery anode material ("BAM") from the
Company's Bissett Creek deposit in order to guide the Company in developing a carbon neutral project.
Additionally, Minviro benchmarked the potential carbon footprint of Bissett Creek against the production
of Chinese natural and synthetic graphite and their upgrade into battery anode material.
Minviro estimated that by powering the mining fleet with natural gas rather than diesel, and replacing the
planned natural gas fired generating plant with hydroelectric power, the Global Warming Potential
("GWP") of the Bissett Creek project could be reduced by more than half, from 2.2 kilograms ("kg") of
CO
2
eq. per kg of graphite produced to 1.0 kg of CO
2
eq.
Minviro is undertaking an additional study to
quantify the benefits of an electric mining fleet to further reduce the project's carbon footprint.
Minviro estimated that Li-ion battery anode material, also known as coated spherical purified graphite
("CSPG"), manufactured from Bissett Creek mine concentrates under the optimized scenario would
have a carbon footprint of 7.3 kg of CO
2
eq. per kg of product.
In comparison, the carbon footprint of
Chinese CSPG produced from natural graphite is estimated at 16.8 kg of CO
2
eq.
and 17 kg of CO
2
eq.
if produced from synthetic graphite.
Gregory Bowes, CEO commented that, "the Minviro report indicates that the carbon footprint of the
Bissett Creek project can be reduced to levels that create a clear and economic path to carbon neutrality
by investing in the creation of credits or purchasing carbon offsets.
Very few mining projects can achieve
this status."
He added that, "the report also highlights the substantially higher carbon footprint of Chinese
production, particularly of synthetic graphite."
Minviro's estimate for the carbon footprint of synthetic Chinese CSPG production is based on a plant in
Fujian Province where the regional power grid mix has a lower environmental impact than Inner Mongolia
where many plants are located and where the grid is largely coal based. Accordingly, synthetic graphite
produced in Inner Mongolia has an even higher GWP due to the large volumes of electricity required.
ESG concerns as well as shutdowns due to high emissions or power shortages/rationing all create
significant supply concerns with respect to Chinese synthetic BAM production.
The EV and battery industries need to be transparent about the environmental impacts of producing both
natural and synthetic graphite and manufacturing battery anode material therefrom as graphite is the
largest single component of a lithium-ion battery.
The evolution from internal combustion engines to EVs
will require multiples of current graphite production and the environmental implications need to be well
understood.
As part of Northern's policy of transparency and full disclosure, and to foster further
discussion on this important issue, Minviro's report will be made publicly available
here
in the coming
weeks after the effect of electrifying the mining fleet has been estimated.
Life Cycle Analysis is a cradle-to-gate study meaning that the product life cycle impact is assessed from
the point of resource extraction to the end-gate, which in this case, is the production of graphite
concentrate and CSPG from the Bissett Creek Project.
The study follows the Greenhouse Gas ("GHG")
Protocol which identifies three types of GHG emissions.
Scope 1 are all direct GHG emissions, Scope 2
are indirect GHG emissions from the consumption of purchased electricity, heat or steam and Scope 3
are embodied emissions, such as the extraction, production and transport of purchased materials and
fuels, outsourced activities, waste disposal, etc.
The study has been conducted according to the
requirements of the ISO-14040:2006 and ISO-14044:2006, including a third-party review from LCA
experts to ensure that it is scientifically robust.
A number of parameters were calculated using high level
assumptions and further testing, data collection and analysis will be conducted.
The goal of Northern's LCA was to identify the major parameters contributing to the global warming
impact of producing graphite concentrate, quantify them in different impact categories, and then
estimate the impact of various alternatives for reducing the carbon footprint of the Bissett Creek Project.
In addition to global warming potential, four other impact categories were evaluated.
These categories
and the implications of the study results are as follows:
1
.
Acidification potential ("AP") relates to the release of SO
2
and NO
2
into the atmosphere which
causes acid rain and ecosystem impairment.
The total freshwater and terrestrial AP of the project
is calculated to be 1.4E-2 mol H
+
eq. per kg of graphite concentrate produced.
Approximately
70% relates to the consumption of diesel fuel in mining operations and 20% to natural gas used for
power generation.
These numbers will be substantially reduced if natural gas or electricity is used
to power the mining fleet and hydroelectric power is used to run the processing plant.
2
.
Disease incidence ("DI") measures the effect on human health from the release of particulate
matter and was calculated to be 3.2E-7 DI per kg of graphite concentrate.
Over 80% relates to the
consumption of fuel on site, which can be mitigated through the use of natural gas and/or electricity.
Dust emissions from vehicles on unpaved roads are minimal due to the low surface silt content and
high rainfall.
3
.
The total water use for the project is 60.6 kg water eq. per kg of graphite concentrate.
The potential
for water deprivation to humans or ecosystems is not considered significant as the project is
located in an area with a low water scarcity index.
4
.
Land use transformation calculates the project's effect on biotic production, erosion potential,
groundwater regeneration, infiltration reduction and physicochemical filtration.
The tailings dams
and waste rock piles will initially create a loss in biotic production and reduce the rate of water
infiltration into the soil as well as its physiochemical filtration capacity.
These effects will moderate
and recover as the areas are revegetated and reclaimed.
Tailings dams and waste rock piles
contribute to a net reduction in erosion potential but they also reduce the amount of ground water
infiltration into aquifers, an effect which is partially offset by increased infiltration in the open pit.
About the Bissett Creek Project
An independent study has rated Bissett Creek the highest margin graphite project in the world including
existing producing mines.
This is due to its very high percentage of valuable large flake graphite, simple
metallurgy and favorable location which provides ready access to equipment, supplies, labor, natural gas
and markets.
The Bissett Creek deposit is located in the southern part of Canada between the cities of North Bay and
Ottawa and approximately 15 kms from the Trans Canada Highway.
A full Feasibility Study has been
completed for the construction of a graphite mine producing 20-25,000 tonnes per year of concentrate.
However, measured and indicated resources are large enough to support a much higher production rate
and the Company is currently re-evaluating its development plans in light of the substantial growth in
EV/battery markets.
The results of this process are expected to be announced in the coming months.
About Northern Graphite
Northern Graphite is a Canadian company, listed on the TSX Venture Exchange ("TSXV"), focussed on
becoming a world leading producer of natural graphite and upgraded, high value products critical to the
green energy revolution including anode material for lithium-ion batteries/EVs, fuel cells and graphene,
as well as advanced industrial technologies.
On December 2, 2021 Northern announced that it had entered into binding purchase agreements to
acquire the producing Lac des Iles graphite mine in Quebec and the Okanjande graphite
deposit/Okorusu processing plant in Namibia from subsidiaries of Imerys SA (the "Transaction").
Closing of the Transaction is subject to a number of conditions including approval of the TSX-V and
completion of $55 million in related financings.
Completion of the Transaction will enable Northern to
become the only North American and the world's third largest non-Chinese graphite producing company.
In addition, Northern will have two large scale development projects that have high quality flake graphite
and are located close to infrastructure in politically stable jurisdictions.
These projects will enable the
Company to significantly expand production to meet rapidly growing demand from the EV/battery
markets.
About Minviro
Minviro was formed to support the global community by ensuring that raw materials used for the low-
carbon economy are sourced at minimal environmental cost. Minviro helps mining, mineral processing
and refining companies understand, quantify and reduce their environmental impacts through a life cycle
assessment ("LCA") which drives sustainability. Since Minviro's formation, a number of mining and
metal projects have been able to quantify the environmental impact of the products leaving their project
and have been provided with expert insights into how they might minimize these impacts.
For additional information
Please visit the Company's website at
http://www.northerngraphite.com/investors/presentation/
, the
Company's profile on
www.sedar.com,
our
Social Channels
listed below or
contact the Company at
(613) 241-9959.
YouTube
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 release include statements regarding,
among others; the Company's intentions to complete the Transaction and related financings and the
Company's market position post-Transaction. 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
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the failure of ongoing and contemplated studies to deliver anticipated results or results that would
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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
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