Nouveau Monde Graphite (NYSE: NMG, TSX: NOU) released its updated technical feasibility study report for the Matawinie mine and Becancour battery material plant integrated graphite projects. The company conducted the updated study in accordance with the National Instrument 43-101.
BBA conducted the updated feasibility study. BBA and various specialized consultants pulled data from NMG’s 2022 feasibility study and updated key parameters in light of technological development, project optimizations, engineering advancement, and updated economic factors.
The updated feasibility study indicated NMG’s phase 2 is technically feasible as well as economically viable. NMG could build the Matawinie mine and Bécancour battery material plant within less than three years. At the time, the mine would enter commercial production.
The Matawinie graphite property is located approximately 120 km north of Montreal in Saint-Michel-des-Saints. NMG’s Becancour site is located adjacent to its phase-1 purification plant, within an established industrial park. The plan it located about 150 km northeast of Montreal on the Saint Lawrence River, in the heart of Quebec’s “battery valley.”
Arne H Frandsen, chair of NMG, said: “The underlying driver for NMG’s ore-to-battery-material business is undeniable. While inflation, geopolitics, and trade dynamics create turbulences, we are focused on delivering on our mission to responsibly produce carbon-neutral advanced graphite materials to power the energy transition. Today’s results demonstrate the attractive operation that we have engineered within a stable jurisdiction and underpinned by high ESG principles to help North American manufacturers secure and reshore their supply chain.”
NMG has developed an integrated material flowsheet to maximize the production of high-value active anode material destined to the battery market segments. Hence, the two facilities are set to operate in tandem to maximize operational efficiencies and margins along the value chain.
The updated feasibility study incorporates NMG’s supply agreements with Panasonic Energy, GM and Traxys, as well as market studies by Benchmark Mineral Intelligence, a regulated and independent price reporting agency. NMG’s previously announced offtake agreements, which are subject to completion of conditions precedent and the project-related agreements, with its Anchor Customers provide visibility, pricing confidence, and reduced commercialization costs.
The Matawinie mine remains the same as reflected in NMG’s previous technical report. The updated feasibility study considers revised key parameters and costs, leveraging advancement in the project since the 2022 report, namely through detailed engineering, preparatory work at the site, key contracts awarded and/or negotiated, procurement planning, construction preparation, as well as optimization of operations between the two phase-2 facilities.
The Quebec government authorized a ministerial decree to operate the mine in 2021. The company has also obtained all permits and authorizations pertaining to exploration, geotechnical, hydrogeological, and early preparatory works to date. NMG has signed a collaboration and benefit-sharing agreement with the Municipality of Saint-Michel-des-Saints as well as an impact and benefit agreement with the Atikamekw First Nation of Manawan.
The confirmation of NMG’s phase-2 viability through the updated feasibility study enables the company to enter its project financing stage with a view to reach final investment decision.
More information is posted on www.NMG.com.
March 27, 2025
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