Name of the Project
Molo graphite project.

Location
Tulear region, south-western Madagascar.

Project Owner/s
Canadian battery materials development company NextSource Materials.

Project Description
The project is at the full feasibility study stage, and ranks as one of the biggest-known and highest-quality flake graphite deposits in the world; it is the only project with SuperFlake graphite.

NextSource will use an all-modular build approach to build the mine.

Initial production is expected to be 17 000 t/y over the first two years of production, followed by mine expansion in Year 3.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
A $29.5-million strategic investment by Vision Blue is expected to fully fund the construction of the project.

Planned Start/End Date
Mine commissioning is targeted for 2022.

Latest Developments
Phase 1 of the Molo graphite project has been delayed and the process plant will be commissioned only in the September quarter.

NextSource has reported that although the processing plant, which has been fabricated and constructed at an offshore facility, is ready to be shipped to the mine, Covid-19 travel restrictions and recent cyclone activity in Madagascar have delayed the start of earthworks and civil work at the mine site.

The commissioning of the 17 000 t/y processing plant has been postponed from the second to the third quarter of 2022.

Meanwhile, the company has released the preliminary economic assessment (PEA) to expand Molo. The Phase 2 study proposes an enhanced expansion comprising a standalone processing plant with a production capacity of 150 000 t/y of flake graphite concentrate over a 26-year mine life.

The PEA projects capital costs for Phase 2 at $155.8-million, with a pretax net present value using an 8% discount of $929.6-million, and a pretax internal rate of return of 41.1%.

NextSource CEO Craig Scherba is pleased with the PEA results, which have defined strong financial returns and underlined the scalability of the project.

The company and its battery anode offtake partners are evaluating construction of a battery anode facility capable of converting flake graphite concentrate from any qualified mine into spheronised and purified graphite and into coated spheronised and purified graphite (CSPG). CSPG is the final form of natural graphite required to manufacture lithium-ion batteries required by original equipment manufacturers.

The company initiated a technical study in November to determine the capital and operating costs for its battery anode facility, and is considering several proposed locations.

Key Contracts, Suppliers and Consultants
Erudite Strategies (engineering, procurement and construction management contractor).

Contact Details for Project Information
NextSource Materials, tel +1416364 4911 or executive VP corporate development Brent Nykoliation, email brent@nextsourcematerials.com.