Metals Australia advances final feasibility study for high-purity graphite refinery in Québec
ASX-listed Metals Australia and its Canadian subsidiary Northern Resources has confirmed in a preliminary economic assessment (PEA) the feasibility develop a new high purity graphite refinery near Baie-Comeau, in Québec.
The project plans to transform 75 000 t/y of flake graphite concentrate, sourced from the company's upstream project near Fermont, into 51 000 t/y of high purity graphite products over an initial 25-year project life.
Northern Resources is advancing the development of the Lac Carheil graphite project in Québec.
The PEA states a pre-tax net present value of $2.05-billion for the refinery, with a strong internal rate of return of 25.6%.
The project's current mineral resource has an average graphite grade of 10.2%, which is 2.4 times higher than that of Nouveau Monde graphite's project – based on the publicly available data.
Metals Australia also has significant upside with nine additional graphite zones over 33km yet to be drilled.
The refinery, planned for Baie-Comeau, will employ 227 people and contribute an estimated $21.5-million in direct wages every year to the local economy.
Baie-Comeau was selected owing to its significant freight advantage, pro-development business community, available industrial land and existing industrial infrastructure – including a rail ferry and deep-water port facilities.
The project will now be advanced directly to final feasibility study which will progress in parallel with community and indigenous engagement activities.
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