AMN - MADAGASCAR: Molo project closer to mining permit

NextSource Materials passed on to delegates at this week's Investing in African Mining Indaba that it is progressing toward a mining approval for the Molo Graphite Project in Madagascar. This follows the receipt of conditional approval for the Global Environmental Permit.

The conditional approval is from the Madagascar Ministry of Environment’s Office National pour l'Environnement (ONE) with the Global Environmental Permit to be granted to NextSource upon receiving its Mining Permit.

The permit was conditionally approved by ONE based on the following accomplishments by NextSource:

- Successful completion of the Environmental & Social Impact Assessment (ESIA) and Relocation Action Plan (RAP) to International Finance Corporation (IFC) performance standards and World Bank standards.

- Successful completion of local and regional stakeholder and community engagement, with overwhelming support from both the local community and local government, as well as the regional government.

- Successful negotiations and signed agreements with all potentially affected land occupants to accept compensation for any affected crops and grazing land, and relocation if needed.

- Successful completion of the ONE’s technical evaluation process. This was a 6-month process that began on June 6, 2018, and consisted of a site visit and four separate community consultations.

- Approved capital investment certification from the Bureau du Cadastre Minier de Madagascar (the Mining Cadastre Office of Madagascar), or BCMM.

- Receipt of Cahier des Charges Miniér (mining specification) from the BCMM as pre-requisite to submitting the ESIA & RAP to ONE for review.

- Joint agreement and signature of the Cahier des Charges Environnementales (environmental specification) with the ONE, with their full support for the development of the Molo Graphite Project.

NextSource president & CEO Craig Scherba said: “The conditional approval of the Global Environmental Permit is a significant achievement for the company, and is the culmination of extensive base line studies, community consultations and environmental impact assessments while proactively working with all stakeholders, including the Madagascar government.

"Our choice to adopt IFC and World Bank Performance Standards during this process reflects NextSource’s commitment to responsible environmental stewardship and will ensure that the Molo Graphite Project will adhere to and operate at the highest international benchmark for environmental standards.

"The company would like to thank the staff within the Ministry of the Environment for their diligence in reviewing and supporting NextSources’ Global Environmental Permit application.

"With the Mining Permit being reviewed, the company expects all required approvals to be in place shortly which will allow NextSource to quickly move towards the financing and construction of the Molo Graphite Project.”

Molo, in the country's south, is a feasibility-stage project and ranks as one of the largest-known and highest quality flake graphite deposits in the world and the only project with SuperFlake® graphite.

In addition to the Molo project, NextSource has 100% ownership of its NI 43-101 compliant Green Giant Vanadium Project, just 12kms from Molo.

www.nextsourcematerials.com