NextSource Materials Inc., a battery materials development company, recently gave an update on the commissioning process at its southern Madagascar graphite mine. The property, Molo Mine, began producing graphite in June last year.
The Toronto-based company’s objective is to become a global supplier of battery minerals via the mining and value-added processing of minerals, particularly graphite. The Molo graphite mine is one of the biggest and highest-quality graphite resources in the world. It is also the only mine with SuperFlake graphite. The mine, which already commenced phase 1 operations, is focused on increasing production in an effort to achieve its rated annual production capacity of 17,000 tons of graphite concentrate.
During the process of optimizing its activities and ramping up production, the company also identified equipment that needed to be replaced. Equipment replacement is to be completed by April, with increased production expected to carry on until June. Its objective is to achieve rated capacity by July 2024. The company expects that its maiden commercial shipment and subsequent sale of its graphite concentrate through offtake agreements will take place in June.
Offtake agreements reduce the risks associated with extracting resources by formalizing a buyer’s intention to purchase a specified amount of a miner’s future output. They are often negotiated prior to the construction of mines and help assure producers that there is a market for the resources they plan on producing.
Despite its slow commissioning process, NextSource has produced graphite concentrate with a carbon content of 95% and above. Its concentrate is being stored at the Molo mine and at a third -party warehouse facility located at the Port of Tulear for shipment. Thus far, the company has shipped nearly 60 tons of its resources for testing and conversion into spheronized, coated, purified graphite to its battery anode facility technology partner.
In December 2023, the company announced the results of its graphite mine expansion, noting in its feasibility study report that proposed production capacity of its SuperFlake graphite concentrate would hit 150,000 tons per annum. The feasibility report was prepared by Erudite Strategies Limited.
It is important to note that NextSource has already commenced the environmental permitting process for expanding its Molo mine. Once adequate funds to cover construction costs and working capital are obtained and an offtake agreement is secured, phase 2 construction will then begin.
NextSource Materials trades on the OTCQB under the ticker NSRCF and on the Toronto Stock Exchange under the ticker NEXT.
Other companies such as Reflex Advanced Materials Corp. (CSE: RFLX) (OTCQB: RFLXF) are also making progress in their focus to avail natural graphite to the growing market for this mineral. Over time, assured supply lines from different parts of the globe will be plentiful.
NOTE TO INVESTORS: The latest news and updates relating to Reflex Advanced Materials Corp. (CSE: RFLX) (OTCQB: RFLXF) are available in the company’s newsroom at https://ibn.fm/RFLXF
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