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    GBM’s Kearney graphite mine restart: PEA economics and cost drivers for engineers

    July 10, 2026|

    Reviewed by Joe Ashwell

    GBM’s Kearney graphite mine restart: PEA economics and cost drivers for engineers

    First reported on MINING.com

    30 Second Briefing

    Restarting Global Battery Materials’ Kearney graphite mine in Ontario is valued at $183 million (C$260 million), with a PEA outlining an after-tax IRR of 67%, a 1.3-year payback and undiscounted after-tax cash flow of about $421 million over a 20-year life. The brownfield plan targets initial output of 23,000 t/y of ~95% carbon graphite concentrate from 2028, ramping to 50,000 t/y, drawing on 29.2 Mt indicated at 2.10% Cg and 33.8 Mt inferred at 1.90% Cg. Operating costs are projected to fall from C$31.35/t milled on diesel to C$25.50/t after grid connection.

    Technical Brief

    • Initial capital is C$65.9 million with sustaining capital of C$30.9 million over life.
    • PEA assumes graphite concentrate, industrial graphite products and upstream battery materials sold into North American markets.
    • Operating strategy includes an initial diesel-powered phase before switching to provincial grid electricity supply.
    • Brownfield plan refurbishes existing processing plant, haulage access and disturbed footprint rather than greenfield construction.
    • June 2026 resource: 29.2 Mt indicated at 2.10% Cg and 33.8 Mt inferred at 1.90% Cg.
    • Contained graphite totals about 613,700 t indicated and 641,700 t inferred within the current resource.
    • Historic open pit processed nearly 1 Mt of ore between 1989 and 1994 before shutdown.
    • Site lies ~280 km north of Toronto, west of Algonquin Provincial Park, with established transport links.
    • Next technical milestone is completion of a definitive feasibility study; no schedule has been disclosed.

    Our Take

    The earlier coverage of Global Battery Materials’ restart plan for Kearney highlighted targeted flake output from 2028, and when set against China’s more-than-90% share of downstream battery-grade graphite processing, this suggests GBM will likely need a downstream or offtake strategy that links Ontario production to processors in South Korea or the United States to capture battery-materials premiums.

    The very low operating costs quoted for the Kearney graphite mine once grid-connected, combined with a 20-year mine life, position it in our coverage as a potentially lower-cost flake supplier than several other Canadian graphite projects that are still at PEA or PFS stage and assume higher unit power costs or full diesel reliance.

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    Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.

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