BY JEFF CHUDZINSKINorth Country This Week

CANTON -- The St. Lawrence County Industrial Development Agency has received $500,000 through a federal Northern Border Regional Commission grant which will assist Empire State Mines' new graphite processing operation. 

The news comes from Congresswoman Elise Stefanik as part of a $6 million funding package that will benefit multiple projects in the region. 

For Empire State Mines, the funding will be used to establish a purification pilot facility for Empire State Mines’ new graphite processing operation and advance critical mineral supply chains.

"I’m proud to deliver more than $5.5 million in NBRC funding to complete critical projects that will drive economic growth and strengthen communities across the North Country. Investing in our region has always been one of my top priorities in Congress, and this funding is another major win for New York families, school districts, rural hospitals, and veterans. I look forward to building on this momentum and advancing NBRC initiatives that improve rural healthcare, expand opportunity, and create new jobs for New Yorkers," said Stefanik.

The news of the investment comes less than two months after New York Power Authority officials on the Power Proceeds board recommended a $1 million investment in the Gouverneur mining operation. 

The move would add 55 full-time jobs and retain 135 current workers with the additional investment. 

According to Patricia Wilson, senior program manager for economic development at NYPA, $500,000 of the $1 million allocation would be used for energy related projects. 

“In this 15th round of allocations for the board to consider, staff recommends an award of $1 million from the Northern New York Economic Development Fund to Empire State Mines, LLC, owned by Titan Mining Corporation and Augusta Group Company,” she said.

She said Empire plans to invest $5.6 million to set up the Gouverneur facility to process 20 to 50 kilograms of flake graphite per hour. 

NYPA officials said the funds being allocated would reimburse Empire for a portion of their costs to purchase machine and equipment, as well as "soft costs" like working capital and engineering designs as well. 

County officials have also been keen on the project as well, touting job creation and tax revenue as motivating factors to work with Empire. 

The legislature also proposed a 40-year lease for the mining operation, with 112 parcels of land involved in the project. 

County officials had secured the properties in the 1950's, 60's and 70's, allowing the county to lease the mineral rights of the land without leasing the land itself.

County Attorney Steve Button said the county had reached a tentative agreement with Empire State Mines for the exploration of the 112 parcels earlier this year.

Environmental reviews and assessments are also in the works as county officials work with Empire officials on numerous parcels that are owned by the county. 

One of the primary motivations for mining flake graphite in New York is the need for the mineral in clean energy components, such as lithium ion batteries, state officials have said. 

Flake graphite is a crucial element as the anode material in such batteries that are used in electric vehicles and renewable energy storage systems, adding to the longevity of the batteries. 

State officials have also identified graphite as a resource that has seen a growing demand and increased competition to procure as the mineral is also used in electric arc furnaces, which is a key technology for decarbonizing steel production. 

According to the NYPA Power Proceeds Allocation Board, the Empire project is one that will help "solve the supply chain resilience issue" while allowing for more onshore production of "inputs essential for energy storage."

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