The Elements of Innovation Discovered
The Elements of Innovation Discovered
Metal Tech News - January 22, 2024
The Lac Guéret deposit on the Uatnan project being acquired by Nouveau Monde hosts 11.3 million metric tons of graphite for the lithium-ion batteries powering electric vehicles.
In a strategic move that positions Nouveau Monde Graphite Inc. to further ramp up its capacity to offer a reliable and environmentally sound supply of graphite for the lithium batteries powering electric vehicles, the Canadian mining and processing company has acquired full ownership of Mason Resources Inc.'s world-class Uatnan graphite project in Quebec.
Uatnan is a road-accessible project about 135 miles (220 kilometers) north of the St. Lawrence River that hosts the very large and high-grade Lac Guéret graphite deposit.
According to a 2018 calculation, Lac Guéret hosts 65.5 million metric tons of measured and indicated resources averaging 17.2% (11.3 million metric tons) of graphite.
Nouveau Monde has been involved with evaluating the potential of developing a world-class graphite mine at Lac Guéret since entering an option to earn a 51% joint venture interest in Uatnan from Mason in 2022. This work resulted in a 2022 preliminary economic assessment 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.
With graphite demand for lithium-ion batteries expected to increase more than fivefold to 10 million metric tons per year by 2030 and the world's largest supplier, China, restricting exports of this critical battery mineral, Nouveau Monde has opted to buy full ownership of Uatnan.
"With its very large, high-quality natural graphite deposit, the acquisition of the Lac Guéret deposit represents a strategically important move by NMG," said Nouveau Monde Graphite Chair Arne Frandsen.
Nouveau Monde, which is already ramping up commercial production at its Matawinie mine and Bécancour battery materials plant in Quebec, plans to integrate Uatnan as an expansion project that will allow the company to ramp up graphite production alongside market demand.
"NMG is poised to respond to continued market growth with a robust expansion plan now secured through the Uatnan mining project," said Nouveau Monde Graphite President and CEO Eric Desaulniers.
Nouveau Monde is also poised to offer some of the world's cleanest graphite anode material for lithium-ion batteries, thanks to the abundance of hydroelectricity available in Quebec, and the company's pioneering spirit.
"Quebec is becoming North America's green battery thanks to its vast hydropower network, and we, in turn, are leveraging this renewable energy and its multiple jurisdictional advantages to establish a new operational model, from ore to battery materials, fully electrified, fully integrated, fully traceable," said Frandsen.
To leverage the abundance of low-carbon energy available in Quebec, Nouveau Monde has been working alongside Caterpillar to develop battery-electric mining equipment that will benefit Matawinie, Uatnan, and a global mining sector endeavoring to achieve net-zero carbon dioxide emissions.
"It started with a bold vision. Going all-electric at our Matawinie Mine is the way to go; environmentally to limit our carbon footprint, socially to rally the community behind a new mining development and to reduce the sound level of our operations, and commercially to engage with battery/EV manufacturers and tap into consumers' responsible purchasing desires," Desaulniers said last October. "Now, Caterpillar is providing us with a comprehensive solution, de-risking the adoption of new technologies and optimizing operational excellence through integrated infrastructure."
The company's battery materials processing plant in Becancour, an area of Quebec being called Lithium Battery Valley due to its emergence as an epicenter for the production of EV battery materials, is also plugged into Quebec's clean energy grid.
As a result, Benchmark Mineral Intelligence named Nouveau Monde as the world's top graphite company on its inaugural lithium-ion battery supply chain sustainability index published in December.
"NMG's leadership position, far ahead of its competitors, is proof of its sustainability promise as well as its commitment to its customers, regulators and stakeholders," Desaulniers said in response to Nouveau Monde being named the industry-leading graphite company on Benchmark's sustainability index.
Nouveau Monde says it is bringing the same environmental, social, and governance standards to its planned development at Uatnan.
"We are committed to intimately involving the First Nation and actively collaborating with the community and stakeholders in the region to ensure responsible and sustainable development," Desauliers said of Nouveau Monde's plans for Uatnan.
To bring the world-class Lac Guéret graphite deposit fully into its portfolio, Nouveau Monde has agreed to issue 6.21 million shares to Mason, valued at roughly C$18.4 million (US$13.7 million) based on Nouveau Monde's share price at the opening of trading on Jan. 22. As a result, Mason will hold a 9.25% stake in Nouveau Monde.
Nouveau Monde has also agreed to pay Mason C$5 million (US$3.7 million) upon reaching commercial production at Lac Guéret.
Our leadership and strong technical teams are looking forward to the smart further development of the Lac Guéret asset, fully synchronized with NMG's current execution plans," said Frandsen. "We also warmly welcome Mason as a shareholder of NMG as we build a pioneering – and possibly the largest! – integrated natural graphite production in the Western World."
Nouveau Monde's acquisition of Uatnan and the high-grade Lac Guéret graphite deposit found there is expected to close on Jan. 31.
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.
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