Increasing production from 17,000 to 150,000 tons annually

The Canadian company NextSource Materials, which operates the Molo graphite mine in Atsimo Andrefana, is enhancing its annual production capacity. The International Finance Corporation (IFC), a subsidiary of the World Bank specializing in the private sector, is financially supporting this project.

Molo is on the verge of becoming one of the largest graphite mines in the world. This ambitious 162 million USD expansion project aims to boost the mine’s production from 17,000 to 150,000 tons annually. The IFC is backing this project with a senior credit facility worth 91 million USD.

The announcement of this agreement will position Madagascar as one of the world’s leading suppliers of graphite, a critical material for electric vehicle batteries.

According to the Canadian mining company, the IFC is working with other financial institutions to mobilize about 50 % of the total investment costs for the project.

The extractive sector currently represents about 5 % of Madagascar’s GDP and 32 % of its exports. Craig Scherba, CEO of NextSource Materials, highlighted that this collaboration with the IFC demonstrates deep confidence in the potential of Madagascar’s graphite mines and its positive impact on Madagascar’s sustainable development.