NMG Gears Up for the Construction of the Phase-2 Matawinie Mine with Substation Contract, Engagement with Contractors and Contribution to Community's Economic Vitality
- Electrical substation contract awarded to ABB; NMG to benefit from robust technical expertise and dedicated resources overseeing engineering, supply, commissioning and start-up of the substation
- Matawinie Mine to be powered by clean hydroelectricity to enable zero-emission operations, what is projected to become the world's first all-electric open-pit mine
- Detailed engineering advancing through continuous work with AtkinsRéalis and SRK
- Active engagement with local and Indigenous contractors ahead of the start of construction to inform procurement strategy and maximize benefits to the regional economy
- Financing completed for recreational center to be implemented adjacent to the mine to ensure harmonious integration into the milieu
Nouveau Monde Graphite Inc. ("NMG" or the "Company") ((NMG, TSX.V: NOU)) has attained tangible milestones in preparing for the construction of the Phase-2 Matawinie Mine through key procurement activities, detailed engineering, construction planning and community investment. Among these is the awarding of the 120kV electrical substation to ABB (NASDAQ:ABBNY) as part of the construction preparation and strategy to secure long-lead items for the establishment of an all-electric 103,000-tpa graphite mining and concentrator complex at Matawinie, 120 kilometers north of Montréal, Canada.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240920229346/en/
Local and Indigenous businesses visited the Matawinie Mine site and met with NMG and Pomerleau representatives in preparation for construction. (Photo: Business Wire)
Arne H Frandsen, Chair of NMG, declared: "The North American market is eagerly awaiting the start-up of our Phase-2 ore-to-active-anode-material operations to access a local and carbon-neutral alternative to China's supply. With Canada having only mined 0.2% of the global natural graphite production last year – and the US 0% (US Geological Survey, January 2024) – Matawinie is set to be a gamechanger in today's reshoring effort. We are pioneering a new era of mining here, in North America, supported by top-tier engineering and local partnerships, setting new standards in sustainability and community integration."
Eric Desaulniers, Founder, President, and CEO of NMG, stated: "We are excited to move one step closer to building the mine of the future, powered by clean energy to responsibly extract and produce a critical mineral for global decarbonization. Our environmental stewardship and innovative mindset have been matched by the team at ABB, from the commencement of our electrification journey, to translate our vision into reality. Now, we have local and Indigenous businesses rallying to help us build the Matawinie Mine, what a great opportunity for shared value creation."
Construction Readiness: Procurement, Engineering and Supply Chain Engagement
NMG has awarded ABB the contract to supply, construct and commission the 120kV substation for the Phase-2 Matawinie Mine. The site will be connected to the provincial hydropower network, enabling the access to clean energy to support mining activities and concentrator production of carbon-neutral graphite concentrate destined to the lithium-ion battery market. Through its collaboration with Caterpillar Inc., NMG is set to equip the Matawinie Mine with a zero-emission mining fleet and associated charging infrastructure, which would make it the world's first all-electric open-pit mine.
A recognized global leader in mine electrification, ABB will lead construction of the substation as the primary connection point between the mining site and Hydro-Québec's hydropower line, enabling full electrification of the Matawinie Mine using renewable energy. NMG will benefit from robust technical expertise and dedicated resources overseeing engineering, supply, commissioning and start-up of the substation.
Moreover, detailed engineering continues to progress steadily with AtkinsRéalis and SRK, underpinning the advancement of long-lead items procurement packages. Also part of the integrated project team, Pomerleau is acting as pre-construction manager to support NMG with the construction sequence and logistics, budget revisions, procurement strategy, as well as health, safety and environment preparedness.
Pomerleau joined the Company's leaders at a networking event at the Matawinie site this week to meet local and Indigenous businesses representatives. The event enabled NMG and Pomerleau to document the capacity, service offerings and availability of businesses in the region, while providing contractors with an opportunity to visit the site, meet the project team, inquire into safety and ESG requirements, and understand the construction procurement strategy.
Contribution to the Community's Vitality
Originated from NMG's stakeholder engagement and commitment to harmonious integration within the milieu, a four-season recreational center is being implemented adjacent to the Matawinie mining site. The non-for-profit organization leading the project development, espace nature Haute-Matawinie, has secured over $4.1 million in government funding and community investments, including a financial and in-kind contribution from NMG, to support the construction and launch of operations.
The center will offer recreational, sporting, educational and cultural activities accessible to the local community and visitors, thus contributing to the region's quality of life and economic development. It was conceived in collaboration with the community and local tourism stakeholders to enhance the region's recreational and tourism offering. Infrastructure will include a graphite interpretation center; 35 kilometers of trails for mountain biking, hiking, running, snowshoeing and fat biking; a 360° observation tower with views of the mine site and surrounding landscape; and service building. Initial work has already begun, with trail marking, trail construction and preparation of the parking lot.
Set to open in fall 2025, the center is expected to attract some 20,000 visitors and hire 9 people, offering long-term benefits to the region, beyond the life of mine. The center was part of NMG's sustainable development pledge to the community and reflected in the parameters of its mining decree. Securing the financing for the construction of the center helps demonstrate to the community, the government, and key stakeholders, NMG's commitment to a socially responsible operation that generates shared value.
Grant of stock options
NMG also announces the grant of 25,000 stock options to Mr. Stéphane Leblanc, the Company's new director, in accordance with the terms of the Company's stock option plan. Each option entitles the holder to purchase one common share of the Company at a price of $1.90 per share, with an expiry date of September 20, 2029.
About Nouveau Monde Graphite
Nouveau Monde Graphite is an integrated company developing responsible mining and advanced manufacturing operations to supply the global economy with carbon-neutral active anode material to power EV and renewable energy storage systems. The Company is developing a fully integrated ore-to-battery-material source of graphite-based active anode material in Québec, Canada. With enviable ESG standards and structuring partnerships with anchor customers, NMG is set to become a strategic supplier to the world's leading lithium-ion battery and EV manufacturers, providing high-performing and reliable advanced materials while promoting sustainability and supply chain traceability. www.NMG.com
Subscribe to our news feed: https://bit.ly/3UDrY3X
Cautionary Note
All statements, other than statements of historical fact, contained in this press release including, but not limited to those describing the future benefit from ABB's technical expertise, the projections about future operations, including reliance on hydroelectricity and becoming the world's first all-electric open-pit mine, the future engagement and potential economic benefits for the region, the implementation and integration of the four-season recreational center into the milieu, the future impact and success of the Matawinie Mine in reshoring efforts, the completion of the four-season recreational center adjacent to the Matawinie mining site, the services and impacts of the four-season recreational center, , and the intended results of the initiatives described in this press release and those statements which are discussed under the "About Nouveau Monde" paragraph and elsewhere in the press release which essentially describe the Company's outlook and objectives, constitute "forward-looking information" or "forward-looking statements" (collectively, "forward-looking statements") within the meaning of Canadian and United States securities laws, and are based on expectations, estimates and projections as of the time of this press release. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Company as of the time of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. These estimates and assumptions may prove to be incorrect. Moreover, these forward-looking statements were based upon various underlying factors and assumptions, including the current technological trends, the business relationship between the Company and its stakeholders, the ability to obtain sufficient financing for the development of the Matawinie Mine and the Bécancour Battery Material Plant, the Company's ability to provide high-performing and reliable advanced materials while promoting sustainability and supply chain traceability, the consumers demand for components in lithium-ion batteries for EVs and energy storage solutions, the ability to operate in a safe and effective manner, the timely delivery and installation at estimated prices of the equipment supporting the production, assumed sale prices for graphite concentrate, the accuracy of any Mineral Resource estimates, future currency exchange rates and interest rates, political and regulatory stability, prices of commodity and production costs, the receipt of governmental, regulatory and third party approvals, licenses and permits on favorable terms, sustained labor stability, stability in financial and capital markets, availability of equipment and critical supplies, spare parts and consumables, the various tax assumptions, CAPEX and OPEX estimates, all economic and operational projections relating to the project, local infrastructures, the Company's business prospects and opportunities and estimates of the operational performance of the equipment, and are not guarantees of future performance.
Forward-looking statements are subject to known or unknown risks and uncertainties that may cause actual results to differ materially from those anticipated or implied in the forward-looking statements. Risk factors that could cause actual results or events to differ materially from current expectations include, among others, those risks, delays in the scheduled delivery times of the equipment, the ability of the Company to successfully implement its strategic initiatives and whether such strategic initiatives will yield the expected benefits, the availability of financing or financing on favorable terms for the Company, the dependence on commodity prices, the impact of inflation on costs, the risks of obtaining the necessary permits, the operating performance of the Company's assets and businesses, competitive factors in the graphite mining and production industry, changes in laws and regulations affecting the Company's businesses, including the changes in China's policy regarding restrictions on Chinese graphite materials exportations, political and social acceptability risk, environmental regulation risk, currency and exchange rate risk, technological developments, and general economic conditions, as well as earnings, capital expenditure, cash flow and capital structure risks and general business risks. A further description of risks and uncertainties can be found in NMG's Annual Information Form dated March 27, 2024, including in the section thereof captioned "Risk Factors", which is available on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov. Unpredictable or unknown factors not discussed in this Cautionary Note could also have material adverse effects on forward-looking statements.
Many of these uncertainties and contingencies can directly or indirectly affect, and could cause, actual results to differ materially from those expressed or implied in any forward-looking statements. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are provided for the purpose of providing information about management's expectations and plans relating to the future. The Company disclaims any intention or obligation to update or revise any forward-looking statements or to explain any material difference between subsequent actual events and such forward-looking statements, except to the extent required by applicable law.
The market and industry data contained in this press release is based upon information from independent industry publications, market research, analyst reports and surveys and other publicly available sources. Although the Company believes these sources to be generally reliable, market and industry data is subject to interpretation and cannot be verified with complete certainty due to limits on the availability and reliability of raw data, the voluntary nature of the data-gathering process and other limitations and uncertainties inherent in any survey. The Company has not independently verified any of the data from third-party sources referred to in this press release and accordingly, the accuracy and completeness of such data is not guaranteed.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Further information regarding the Company is available in the SEDAR+ database (www.sedarplus.ca), and for United States readers on EDGAR (www.sec.gov), and on the Company's website at: www.NMG.com
View source version on businesswire.com: https://www.businesswire.com/news/home/20240920229346/en/