Roskill’s view is that “the Molo project (Madagascar) has a lower capital expenditure than other similar projects owing to its modular approach to the plant build. In addition to this, Nextsource has announced that its operating cost will be competitive with Chinese production, and in the lowest quartile on an all-inclusive CIF basis global comparison of operations.”

Canadian-based graphite company NextSource Minerals is pressing ahead with its 17,000 t/y Molo project in Madagascar, based on a much lower cost modular approach for Phase 1. The feasibility study puts the capital cost of the mine and plant at $18.4 million and the operation is expected to be in commercial production by the end of 2018. Phase 2 will involve a hike in capacity to 50,000 t/y, with front end engineering and design beginning in early 2018, if market conditions permit.