Name of the Project
Molo graphite mine expansion.

Location
Province of Toliara, southern Madagascar.

Project Owner/s
NextSource Materials.

Project Description
A feasibility study has confirmed the highly attractive economics for a large-scale expansion of the Molo mine and processing facility.

The study proposes an expansion to the mine’s current Phase 1 production capacity of 17 000 t/y through the construction of an additional and standalone processing plant, which will increase the steady-state production rate of SuperFlake graphite concentrate to 150 000 t/y over a 25-year life-of-mine.

The feasibility study assumes the additional processing plant will be built adjacent to the current Phase 1 processing plant, presently in the ramp-up stage of production.

The expansion will use the company’s unique, fully modular build approach, which significantly reduced build time and associated costs with regard to conventional mine construction, to build its Phase 1 processing plant.

Phase 1 is powered by a solar-hybrid power plant that is expected to reduce CO2 emissions by more than 11 300 t/y.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of $424.1-million and an internal rate of 31.1%.

Capital Expenditure
$161.7-million.

Planned Start/End Date
Not stated.

Latest Developments
The first commercial shipments of graphite concentrate to Germany and the US have been completed.

Container loads of coarse flake graphite concentrate have been exported from Madagascar’s Tulear port under existing offtake agreements. These initial container shipments of SuperFlake graphite are destined for key demand markets for higher-value graphite products, including refractory materials and graphite foils for consumer electronics and fire-retardant applications.

The Molo mine has started production, with Phase 1 mine operations ramping up to reach nameplate production capacity of 17 000 t/y of graphite concentrate. 

The company, chaired by Vision Blue’s Sir Mick Davis, is also developing a significant downstream graphite value-add business through the staged roll-out of battery anode. 

Vision Blue is a major shareholder in NextSource.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
NextSource Materials, tel +1 416364 4911 or email info@nextsourcematerials.com.