NextSource Materials eyes expansion of Molo mine
NextSource Materials is eyeing expanding the Molo graphite mine in Madagascar. The firm revealed the plans and said feasibility study on the possible expansion has been conducted and report confirms highly attractive economics for a large-scale expansion.
The study proposes an expansion of Molo Graphite Mine’s Phase 1 production capacity to 150,000 tons per annum (tpa) of SuperFlake® graphite concentrate over a 25-year mine life. The project’s capital cost is $161.7 million. The pre-tax net present value of the project is $424.1 million with an 8% discount rate.
The study suggests building an additional processing plant next to the current Phase 1 plant, using a modular build approach to reduce construction time and costs. The expanded capacity aims to meet the growing market demand for flake graphite, especially in electric vehicle batteries. NextSource aims to position itself as a major global supplier to address market demand and counter export restrictions on graphite from China.
Mine potential
The 150,000 tpa production capacity is determined based on discussions with automotive manufacturers, battery anode offtake partners, and anticipated demand forecasts for flake graphite used in electric vehicle batteries. Coated Spheronized Purified Graphite (CSPG) is highlighted as the final form of natural graphite used in lithium-ion batteries for electric vehicles. The country’s government granted NextSource Materials a 40-year mining license for the Molo graphite project.
Madagascar is known for having some of the world’s best graphite deposits with over a century of experience in graphite production. Flake graphite is identified as a crucial component in various industries, especially in batteries, particularly lithium-ion batteries, due to its stable and high-energy storage capacity.
