Thousands of residents in Kitgum and neighbouring districts could benefit from increased employment, business opportunities and infrastructure development after London-listed mining company Blencowe Resources raised the value of its Orom-Cross Graphite Project to US$1.254 billion (about Shs4.7 trillion) following an updated Definitive Feasibility Study.
The revised valuation strengthens the commercial prospects of the graphite mine in Orom East Sub-county and is expected to improve the project’s ability to attract financing ahead of construction and production, which is targeted to begin in 2027.
Prepared by Australian engineering firm CPC Engineering, the updated feasibility study increased the project’s post-tax Net Present Value by 15% compared to the original study of December 2025.
According to Blencowe’s July 2026 project report, the mine is expected to generate US$4.466 billion in post-tax cash flow over its lifespan while maintaining its capital requirement at US$170 million. The study projects average annual production of 108,000 tonnes of graphite concentrate and annual EBITDA of US$333 million.
Blencowe attributed the stronger financial outlook to expanded graphite resources, improved mine planning, downstream processing, new offtake agreements and demand for graphite outside China.
“Project now significantly de-risked,” the company said, noting that the updated study incorporates revised prices, increased reserves, new products and updated operating costs.
The revised valuation follows a significant increase in the project’s mineral inventory. JORC-compliant graphite resources have increased by 168 per cent to 64.3 million tonnes grading 6.04 per cent Total Graphitic Carbon (TGC), while mineable reserves have risen by 47 per cent to 23.08 million tonnes grading 5.18 per cent TGC after the 2025 drilling programme.
The company also announced discovery of two new high-grade deposits, Beehive and Iyan. Only 2% of the licence area is so far explored, leaving considerable potential for further resource expansion.
Dan Michael Komakech, Communications and Public Relations Officer at Consolidated Africa Resources Limited (CARL), which is implementing the project in Uganda, said the latest drilling confirmed the deposit is substantially larger than previously estimated.
“The latest drilling campaigns show that the deposit is massive,” Komakech. “Geologists estimate the resource to be between two and three billion tonnes.”
He added that deeper drilling had shown the high-quality graphite extends well beyond the initial exploration depth, increasing confidence in the project’s long-term commercial viability. As part of its value-addition strategy, Blencowe plans to process graphite in Uganda instead of exporting raw concentrate. A beneficiation plant will be built at Orom before a Spheronised Purified Graphite (SPG) processing plant is established in Angagura Sub-county, Pader District, to produce battery-grade graphite for lithium-ion batteries.
The company said local processing will significantly increase the value of Uganda’s graphite exports while positioning the country among the first producers of spherical purified graphite outside China.
The project has also attracted international support.
The United States International Development Finance Corporation has provided a US$5 million technical assistance grant and retains first rights to provide debt financing for mine development, while the European Union-backed SAFELOOP programme has selected Orom-Cross as its exclusive supplier of natural flake graphite for next-generation electric vehicle batteries.
Beyond its commercial potential, the company says the project will deliver direct benefits to surrounding communities through employment, local procurement, infrastructure development, education scholarships and continued engagement with residents.
Komakech said the company began by helping local landowners formalise their land rights through the Lochomu Communal Landowners Association before signing surface rights agreements to access the mining area.
“Before you access the resource, you have to pass through someone’s land. What we did was empower the community by helping them acquire a land title in their own names under the Lochomu Communal Landowners Association,”he said.
He added that environmental and social impact studies found no households would require resettlement because there are no permanent settlements within the mining licence area.
The company has also opened access roads across the 2,073-hectare mining licence area and connected the project to two electricity transmission lines through support from the Ministry of Energy and Mineral Development.
In neighbouring Angagura Sub-county, Pader District, local landowners have already sold 100 acres to the company for the planned SPG processing plant. Komakech said the company paid US$70,000 for the land, with surveys already underway ahead of environmental assessments and construction.
George Odong, a resident of Kitgum Municipality, has appealed to the project’s developers and the government to prioritise residents for employment and business opportunities as the Orom-Cross Graphite Mine prepares to begin production in 2027.
Odong said the multi-billion-dollar investment would only have a meaningful impact if it created jobs for communities hosting the project.
“We have lived with this project throughout the exploration phase. Now that production is nearing, our expectation is that our children and other residents will be given priority for employment,” he said.
Rose Akello, a caterer at Kitgum Main Market, urged the company to reserve procurement opportunities for local suppliers, including transporters, food vendors and other small businesses.
She said the company should begin informing communities about available jobs and contracts and explain how residents can apply.
“It would be unfair to recruit cooks from another district when there are women living nearby who are capable of doing the same work,” Akello said. “Local people should be the first to benefit.”
She warned that if residents are excluded from jobs and procurement contracts, the economic benefits of the project would largely bypass the host communities.
The Orom-Cross Graphite Project, developed by Blencowe Resources through CARL, covers approximately 2,073 hectares in Akurumor Parish, Orom East Sub-county.
Geological studies estimate the deposit contains between two and three billion tonnes of graphite, enough to support mining for more than 50 years and position Uganda as a key supplier of graphite for the global electric vehicle battery industry-URN. Give us feedback on this story through our email: kamwokyatimes@gmail.com
