TSX-listed strategic materials development company NextSource Materials reports that construction of the Molo graphite project, in Madagascar, is on schedule and within budget.

The $25-million first phase of the Molo project is fully funded and is expected to be the next graphite mine to enter production outside of China.

The company’s engineering, procurement and construction management contractor Erudite Strategies reports that the attrition and ball mills, crushers, flotation columns, screeners, feeders, mixing tanks, bagging and drying systems have been fabricated and are ready for assembly.

These comprise the major components of the Molo mine processing plant.

This equipment will shortly be received by NextSource’s engineering, procurement and construction (EPC) firm, to start assembling the modules.

The EPC firm specialises in the design, engineering, construction and assembly of fully modular processing plants.

NextSource says this is the reason its Molo mine is able to have a very low mine capital cost, as compared to its competitors and can reach the commissioning stage inside of 12 months from the start of construction.

NextSource personnel have been mobilised to Madagascar to starts preparations for site works, which are on schedule to commence in the second half of this year.

Plant equipment is on track to be delivered to site in the first quarter of 2022, with plant equipment module installation at site on schedule to start in the first half of 2022.

Further, NextSource says it does not require any more money to reach commissioning, which is on schedule for the second quarter of 2022, after receiving $29.5-million in funding from its strategic investor Vision Blue Resources in May.

Vision Blue is NextSource’s largest shareholder and is a private investment company with a focus on metals and minerals linked to the clean energy revolution.

Molo is expected to produce about 17 000 t/y of SuperFlake graphite concentrate at free-on-board operating costs of $566/t.

NextSource CEO Craig Scherba says that building a mine during “normal” times is fraught with challenges and these challenges are exacerbated in the midst of the global Covid-19 pandemic.

“The construction philosophy we have adopted has mitigated these challenges, and the project is on track due to the extremely hard work and perseverance of the various people involved. Their hard work and flexibility in adapting to ever-changing circumstances have been instrumental in bringing the mine closer to fruition.”