The Elements of Innovation Discovered
The Elements of Innovation Discovered
Metal Tech News – January 11, 2023
The graphite found at the Lac Guéret and Matawinie deposits in Quebec is used as an anode material in the lithium-ion batteries powering electric vehicles and cordless electronics.
Click on image for larger map.
As it ramps up to commercial production at its Matawinie graphite mine and Becancour battery materials plant in Quebec, Nouveau Monde Graphite Inc. released the results of a preliminary economic assessment for developing a much larger graphite mining operation at the world-class Lac Guéret deposit on Mason Graphite Inc.'s Uatnan project in Northern Quebec.
A road-accessible project about 175 miles (285 kilometers) north of the St. Lawrence River, Lac Guéret hosts 65.6 million metric tons of measured and indicated resources averaging 17.2% (11.2 million metric tons) graphite.
In July of last year, Nouveau Monde entered into an option agreement to earn a 51% joint venture interest in Lac Guéret, a project that was renamed in collaboration with the Innu First Nation of Pessamit to Uatnan, which means Tamarack.
Now, under that option, Nouveau Monde and Mason have unveiled a PEA that considers a mining operation at Uatnan that would produce roughly 500,000 metric tons of graphite concentrate annually for 24 years, making it one of the largest graphite projects being considered for development globally.
For some sense as to the scale, the annual output from this proposed operation would equate to nearly half of all the graphite mined globally during 2021. The world-class size of this operation aligns with the enormous demand for graphite that goes into lithium-ion batteries powering the electric vehicle revolution.
Taking into consideration the global rate of EV adoption, S&P Global Platts' forecasts that by 2030 that 5 million to 6 million metric tons of graphite will be needed per year to meet global demand for this lithium-ion battery anode material.
The proposed mine at Uatnan would help fill a significant percentage of this foreseen demand.
"The Uatnan Mining Project aligns with our vision of progressive, integrated growth that caters to the market's requirements for high-quality graphite materials, local supplies, ESG-driven development, and large volumes to meet EV production levels," said Nouveau Monde Graphite Chair Arne Frandsen. "Building on our Matawine graphite operation's successes, I am confident that our extended technical team's expertise will enable us to develop what is projected to become one of the world's largest graphite mines."
After entering an option to earn a majority stake in Uatnan, Nouveau Monde and its consultants decided to better match the world-class potential of the Lac Guéret deposit with the growing demand for the graphite needed to power the EV revolution. This led to the PEA that considers an operation capable of producing approximately 500,000 metric tons of graphite concentrate per year, which is nearly 10 times larger than the 51,900-metric-ton-per-year operation previously considered.
"It is our intention to capture as much market share as possible during this historical period of growth of lithium-ion battery manufacturing in North America and Europe," said Nouveau Monde Graphite President and CEO Eric Desaulniers.
In line with Nouveau Monde's responsible mining approach, the plan for Uatnan is focused on minimizing the environmental footprint, implanting an all-electric mining fleet, and proactive engagement with the Innu First Nation of Pessamit and communities in the region.
When it comes to minimizing the carbon footprint at Uatnan, this world-class graphite deposit benefits from being only about 45 miles (70 kilometers) away from a hydropower facility that could deliver zero-carbon electricity to a mining operation developed there. Much like at its Matawine graphite mine project to the southwest, Nouveau Monde intends to leverage the availability of clean hydropower with a fleet of electric mining and hauling equipment at Uatnan.
"The PEA confirms the tremendous potential of the Uatnan Mining Project as a lever of decarbonization for cleantech markets and socioeconomic growth for local communities," said Desaulniers.
As part of its "Zero Harm" strategy, Nouveau Monde is working with Caterpillar Inc. and others to develop electric mining equipment that would be used at Matawine, Uatnan, and globally.
More information on Nouveau Monde's ESG initiatives, including the development of electric mining equipment, can be read at Nouveau Monde details Zero Harm strategy in the October 20, 2021 edition of Metal Tech News.
Because electric equipment for surface mining is still in the development phase, the PEA considers a diesel-powered fleet as the base case for Uatnan.
Based on the currently projected US$1,100 per metric ton of graphite concentrate selling price, the mine proposed for Uatnan would be economically robust.
According to the PEA, Uatnan would generate an after-tax net present value (8% discount) of C$2.17 million (US$1.62 million) and an after-tax internal rate of return of 25.9%.
It is anticipated that it would take 3.2 years to pay back the C$1.42 billion (US$1.06 billion) in initial capital needed to develop the mine.
With the PEA detailing an economically robust and technically viable mine at Uatnan, Nouveau Monde plans to launch a feasibility study that considers the operation detailed in the PEA and supports the company's phase-three growth plans.
Phase one involved establishing the Matawinie mine and Becancour battery material plant, and the second phase involves ramping up commercial production at these two operations.
"While the core of NMG's technical team is extremely focused on developing and advancing our Phase-2 Matawinie Mine and Bécancour Battery Material projects, it has become increasingly important for our customers and strategic for our shareholders to accelerate the deployment of our Phase 3," said Desaulniers. "We will leverage our existing Phase-1 facilities, the environmental stewardship measures being developed for our Phase-2 operations, our proprietary technologies, and our demonstrated ESG credentials to advance the Uatnan Mining Project toward development."
With more than 16 years of covering mining, Shane is renowned for his insights and and in-depth analysis of mining, mineral exploration and technology metals.
Reader Comments(1)
Eidolon writes:
Graphite One should pay attention to this. That's their competition. Cool lake made by the hydroelectric dam!!
01/11/2023, 8:46 am