NextSource says graphite operations not impacted by political unrest in Madagascar

NextSource Materials’ (TSX: NEXT) graphite mining operations in southern Madagascar have not been impacted by the ongoing political situation, and shipments of its graphite products are proceeding as planned, the company confirmed.

The East African nation is currently in political turmoil following a military takeover that ousted President Andry Rajoelina on Oct. 14. The upheaval began Sept. 25 with youth-led protests against economic hardship and corruption, which were then joined by an elite military unit, leading to Rajoelina’s impeachment and flight from the country.

According to NextSource, mining and processing activities at its Molo mine are continuing under normal conditions, and its regular campaign production and logistics are both on schedule. The company’s trademarked SuperFlake graphite products are also being shipped to international customers form the port of Tulear without disruption, it added.

“NextSource maintains close engagement with community stakeholders to ensure continued collaboration and stability around its operations,” the company stated in a news release, adding that it will continue to monitor the events in Antananarivo, Madagascar’s capital city.

Molo mine

Located 900 km away in southern Madagascar, the Molo mine represents one of the world’s largest and highest quality graphite deposits, with over 100 million tonnes in measured and indicated resources grading approximately 6.3% graphitic carbon.

The mine, which came online two years ago, currently produces high-quality graphite concentrate with a fixed carbon content between 94-97%. While it has an initial annual production capacity of 17,000 tonnes, plans are underway for an industry-scale expansion that would see its capacity increase over tenfold.

Shares of NextSource plunged 8.9% at Friday’s close to C41¢ apiece amid a market-wide selloff. The Canadian miner has a market capitalization of C$75.8 million.

Col. Michael Randrianirina, the coup leader, was sworn in as president on Friday. He said a military council will run the island nation for at least 18 months before new elections. The African Union and the United Nations Secretary General Antonio Gutirez have condemned the coup.

The union, a continental body that promotes integration among Africa’s 55 states, suspended Madagascar. It joins Burkina Faso, Gabon, Guinea, Mali, Niger and Sudan in suspension for military takeovers over the past several years.