NextSource inks $91m mandate letter to fund Madagascar graphite expansion
Battery metals supplier NextSource Materials on Thursday announced the signing of a mandate letter with the International Finance Corporation (IFC) to fund the expansion of the Molo graphite mine, in Madagascar.
The company is planning a large-scale expansion of the Molo mine and processing capacity from 17 000 t/y to 150 000 t/y of SuperFlake graphite concentrate.
The IFC debt facility would fund about half the capital costs and working capital requirements for the expansion.
A December 2023 feasibility study pegged the expansion capital cost at $161.7-million, plus working capital of $25.2-million, resulting in an aftertax net present value of $370-million and an internal rate of return of 29%.
“We are delighted to announce the signing of a Mandate Letter with IFC, marking a significant milestone in our journey to expand the Molo graphite mine and support the diversification of global supply chains for critical battery materials.
“This partnership underscores the confidence placed in NextSource’s Molo mine expansion by one of the world's leading development finance institutions,” said president and CEO Craig Scherba.
The Molo mine is one of the largest-known and highest-quality graphite resources globally, and the only one with SuperFlake graphite. The mine has begun production, with Phase 1 operations undergoing a ramp-up to reach its nameplate capacity of 17 000 t/y.
The company is also developing a significant downstream graphite value-add business through the staged rollout of battery anode facilities (BAF) capable of large-scale production of coated, spheronized and purified graphite for direct delivery to battery and automotive customers, outside of existing Asian supply chains, in a fully transparent and traceable manner. NextSource intends to build its first BAF in Mauritius.
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