Titan Mining Corporation and the U.S. Department of the Army have taken a notable step forward in efforts to establish domestic graphite processing capacity on American soil. The company announced that its wholly owned subsidiary, Empire State Mines, LLC, and the Army have executed a term sheet outlining the principal commercial terms for a proposed Enhanced Use Lease. This graphite processing framework would pave the way for a critical minerals facility on U.S. Army property at Anniston Army Depot in Alabama.
The proposed development would be situated on approximately 97 acres of underutilized Army land at the depot. Under this graphite processing framework, the facility would leverage established infrastructure, existing site access and coordinated utilities planning already available within the defense installation.
- Empire State Mines would develop, finance, build, own and operate the proposed facility
- Phase I production is planned for Purified Micronized Graphite (PMG)
- Coated Spherical Purified Graphite (CSPG) is planned following customer qualifications
- The proposed lease framework contemplates an initial 50-year term with two additional 25-year renewal options
- Potential total operating tenure could reach up to 100 years, subject to the definitive Enhanced Use Lease
“Agreeing to this commercial framework with the U.S. Army is a significant milestone in Titan’s strategy to build a fully integrated American graphite supply chain. Developing within an existing Army installation provides important infrastructure and strategic advantages and creates a pathway to establish large-scale domestic graphite processing without having to develop an entirely new industrial site from the ground up.
Importantly, this is more than securing a site. The proposed framework combines long-duration site control, strategic U.S. defense infrastructure and financing flexibility with Kilbourne’s domestic natural flake graphite resource, our existing operating infrastructure and expertise in New York, and our growing customer qualification programs. Together, these elements provide a pathway to build a secure American graphite supply chain from mine through value-added purified graphite products.
With the potential for up to 100 years of site tenure, we are establishing the foundation for a long-term domestic processing platform capable of supporting U.S. defense, advanced manufacturing and energy supply chains for decades to come.” said Rita Adiani, President and Chief Executive Officer of Titan Mining Corporation.
Proposed Lease Structure and Army Procurement Rights
The graphite processing framework is designed to accommodate project financing while offering long-duration site control within strategic U.S. defense infrastructure. Under the proposed terms, the Army would hold a right of first offer to purchase certain uncommitted PMG and CSPG produced at the facility. That right would be limited to a maximum of 10 percent of annual facility production and would remain subject to applicable federal procurement requirements. This does not constitute a binding offtake agreement.
“The ability to process critical minerals on U.S. soil is a national-defense priority required for munitions, missiles, sensors, batteries, and the platforms our Soldiers depend on. Leveraging our legal authorities and land, the U.S. Army is able to help nurture and expedite the growth of critical minerals industrial base which equips and sustains America’s Soldiers without putting any taxpayer dollars at risk.” said Dr. Jeff Waksman, Principal Deputy Assistant Secretary of the Army for Installations, Energy and Environment.
The facility is intended to produce value-added natural graphite products that support U.S. defense, industrial and energy supply chains. Its placement within an existing Army installation is designed to reduce the burden of developing an entirely new industrial site.
Conditions Remaining and Parallel Developments
The definitive Enhanced Use Lease has not yet been executed. Completion of the agreement remains subject to customary conditions, including development and energy operating plans, environmental and regulatory matters, appraisal and valuation requirements, project financing, Titan Board approval, and applicable Army and Congressional processes.
- Additional site diligence continues at Pine Bluff Arsenal in Arkansas and Fort Drum in New York
- Titan is advancing the Kilbourne Graphite Project separately, including its Feasibility Study
- Customer qualification programs and commercial development activities at Kilbourne continue in parallel
The domestic graphite supply chain has drawn increasing attention as a national priority, and this graphite processing framework represents a structured step in that direction. The parties will now continue working toward execution of the definitive Enhanced Use Lease and completion of remaining project development requirements.