Name of the Project
Matawinie mine and Bécancour battery material plant – Phase 2.

Location
The Matawinie graphite property is located north of Montréal, Québec, Canada, in Saint-Michel-des-Saints.

Project Owner/s
Aspiring strategic graphite supplier Nouveau Monde Graphite Inc (NMG).

Project Description
The Phase 2 Matawinie mine has been designated a project of national interest by the Canadian government as part of efforts to strengthen domestic critical minerals supply chains and support allied economies.

Once in production, the project is expected to become the largest graphite mine in the G7, supplying material for battery, advanced manufacturing and energy applications.

An updated feasibility study has indicated that Phase 2 is technically feasible and economically viable.

With a 25-year life-of-mine, the Matawinie mine will leverage the West Zone deposit for a nominal production of 105 882 t/y of graphite concentrate. 

The deposit will be mined using conventional openpit mining methods consisting of drilling, blasting, loading and hauling.

The site is considered concrete-ready for the start of construction upon a positive final investment decision, with several key contracts having been awarded, including process equipment, the dedicated powerline and the electrical substation.

The Phase 2 Bécancour battery material plant is planned as a comprehensive advanced processing platform set to receive Matawinie graphite concentrate production for refining and commercial distribution. The plant is expected to produce 43 334 t/y of micronised graphite by-product.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The Matawinie mine and Bécancour battery material plant have a pretax net present value, at an 8% discount rate, of $1.33-billion and an internal rate of return of 17.3%, with a payback of 5.8 years.

Capital Expenditure
The Matawinie mine and Bécancour battery material plant require initial capital expenditure (capex) of $1.33-billion.

Capex for the Matawinie mine is estimated at $415-million and for the Bécancour battery material plant at $911-million.

Planned Start/End Date
Upon a positive final investment decision, the Matawinie mine and Bécancour battery material plant could be built and could enter commercial production in less than three years.

Latest Developments
NMG has secured a $335-million senior project debt commitment to advance Phase 2.

The funding has been committed by Export Development Canada and the Canada Infrastructure Bank, and will support the project’s construction, development and commissioning.

The package comprises a $290-million senior secured term loan and a $45-million cost overrun facility, forming the core of the project’s capital structure and supporting its progress towards a final investment decision.

According to the company, the long-term debt facilities offer competitive rates and flexible repayment terms aligned with international environmental, social and governance standards.

Nouveau Monde has said the project has already been substantially derisked, with detailed engineering about 80% complete, key permits secured and preparatory site works under way. Agreements have also been concluded with the Atikamekw First Nation of Manawan and local stakeholders.

The financing is further supported by long-term offtake agreements covering about 75% of future production, including arrangements with the government of Canada, Panasonic Energy and Traxys, giving the project stronger revenue visibility.

Proceeds from the debt facilities will be used to fund construction, working capital and transaction costs, while the cost overrun facility provides additional protection against possible budget increases.

The company will now advance towards financial close and construction once the required conditions have been met while continuing discussions with strategic investors to complete the equity portion of the project funding.

Key Contracts, Suppliers and Consultants
Not disclosed.

Contact Details for Project Information
Nouveau Monde Graphite Inc, tel +1 450 757 8905.