NextSource Materials (TSX: NEXT; US-OTC: NSRCF) is one step closer to producer status now that it's started commissioning of its Molo graphite mine in Madagascar.
Molo mine will initially produce around 17,000 tonnes of flake graphite concentrate per year. An expansion, which could elevate Molo's annual graphite production to 150,000 tonnes, is also planned for year three of production.
"Commissioning of the Molo graphite mine is a testament to the hard work and perseverance of our employees and contractors who have brought this project from design through to implementation in the midst of a global pandemic and shifting geopolitical landscape," CEO Craig Scherba commented in a news release.
"That hard work has placed the company in an enviable position as it transitions into a global graphite producer at a time when graphite consumption is increasing dramatically due to the explosive growth in demand for lithium-ion batteries," he added.
Installation of the solar and battery facility for the hybrid power plant - which is central to the first phase of development at Molo - is under way. It consists of a thermal generation facility, which is already in operation, and a solar and battery facility, consisting of a 2.6-MW solar PV facility and a 1-MWh battery energy storage system.
The thermal facility currently supplies all of the plant's power requirement, and once completed, the solar and battery facility will provide up to 33% of the mine's total electricity needs using renewable energy. According to NextSource, this hybridized power solution is expected to reduce CO2 emissions by over 11,300 tonnes per year.
Aiming to become a vertically integrated battery materials supplier, NextSource recently announced its global battery anode facility (BAF) expansion strategy, which involves building multiple BAFs globally that would be capable of turning its graphite concentrate into commercial-scale anode material.
Concurrently, the company published results of a technical study for its first BAF (BAF1) located in Mauritius. Mauritius was selected due to its proximity to the Molo mine and its position on strategic shipping routes to key markets, in particular Asia.
Front-end engineering and design and environmental and social impact assessment permitting are currently in progress, and the graphite developer said it is in "active discussions" with strategic offtake partners and debt and equity financiers who have expressed an interest in funding construction of its first anode facility.
Subject to obtaining the necessary funding and completion of the permitting process, NextSource is targeting production from facility in the second quarter of 2024.
Shares of NextSource Materials shot up 5% by 11:50 a.m. Toronto time. The company has a market capitalization of $288.7 million.