Mining Weekly

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
$24-million, plus $3-million for working capital.

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

Latest Developments
NextSource Materials has said that increases in global logistics costs have resulted in a $3-million increase in the construction budget for Phase 1 of the Molo graphite mine.

The Phase 1 capital cost budget is now $27-million.

Earthworks and civil construction at the mine site are progressing on schedule and will be ready for the arrival of the processing plant and auxiliary buildings in June, the company has reported.

Completion of construction and plant commissioning is expected in the third quarter of this year.

Further, the Madagascar subsidiary of CrossBoundary Energy (CBE) has started construction of the solar and battery hybrid power plant for Phase 1 of the Molo mine.

NextSource announced in November 2021 that it had appointed CBE to build, own and operate a solar, battery and thermal hybrid energy power plant over a 20-year term.

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.