Nextsource Materials Reports Positive Feasibility Study for Phase 2 Expansion of Madagascar Graphite Mine
NextSource Materials Inc., a Canadian mining company, has released positive results from an updated feasibility study for the proposed Phase 2 expansion at its Molo Graphite Mine in southern Madagascar. The plan aims to increase production capacity to 150,000 tonnes per year of flake graphite concentrate over a projected mine life of 37 years. This will be achieved through two phases involving three new processing modules each with a 50,000-tonne-per-year output. The expansion is expected to require $290.8 million in capital expenditures and deliver strong financial returns, including a pre-tax net present value of $402.5 million at an 8% discount rate and a pre-tax internal rate of return of 21%. The modular construction approach aims to reduce build time, costs, and execution risks compared to traditional methods. The company's CEO emphasized the strategic importance of this expansion in meeting growing demand for graphite from electric vehicle battery markets. NextSource is also leveraging an existing off-take agreement with Mitsubishi Chemical Group as part of its vertical integration strategy.
Topics: battery materials electric vehicles expansion graphite