Northern Graphite Corporation has pushed back the expected restart of its Lac des Iles graphite mine in Quebec from the third quarter of 2026, citing a mining lease dispute, financial constraints, and prevailing market conditions.

The delay follows an August 10, 2026, notice from the Ministère des Ressources naturelles et des Forêts advising of the suspension of the LDI mining lease over an outstanding payment related to a site restoration financial guarantee. Following an updated plan approved in November 2025, the total guarantee increased by about $1.8 million, lifting the required amount from about $8.2 million to about $10.1 million.

Northern Graphite was asked to pay a $0.9 million cash deposit by February 28, 2026. The company disagrees with the calculation and deadline under the Mining Act of Quebec, maintaining that its existing $8.2 million surety bond covers the first two instalments and that the final portion is not payable until November 28, 2027.

“However, we do not agree with the interpretation the MRNF has provided in this matter and consider, on the basis of our legal adviser's analysis, that we are not in default, because the final portion of the guarantee should not be payable until November 28, 2027.”

— Hugues Jacquemin, Chief Executive Officer

Northern Graphite intends to contest the MRNF decision before the Quebec Court by a September 9, 2026 deadline. The mining lease suspension will be stayed until the court renders a final judgment.

The setback comes despite Northern receiving an amended Certificate of Authorization on July 9, 2026, allowing the company to expand the pit westward and add up to eight years to the mine life.

The LDI mine and mill were placed into temporary care and maintenance in November 2025 to carry out upgrades designed to reach nameplate capacity of 25,000 tonnes per year. However, the extended shutdown has depleted financial resources, and the company plans to temporarily reduce its workforce to control costs.

“The extended shutdown has depleted financial resources and we will need to secure sufficient working capital or financing while also having confidence that the market can absorb the level of production required to operate the new pit economically.”

— Hugues Jacquemin, Chief Executive Officer

The timing of the restart now depends on securing working capital or additional financing, alongside sufficient visibility into product demand.

Read the full announcement: Northern Graphite Provides Update on Lac des Iles Restart Plans