Nouveau Monde Graphite (NYSE: NMG, TSX: NOU) has obtained a key mining lease for its Matawinie mine in Quebec, marking a regulatory milestone for the company. The stock rose.
Mining lease No. 1057, issued by Quebec’s Ministry of Natural Resources and Forests, gives NMG the right to mine the graphite deposit at Metawinie. The company says the lease follows several years of environmental, social and regulatory work.
Eric Desaulniers, NMG’s founder, president and CEO called the lease “a source of great pride” for the company. “This milestone is the result of several years of dialogue and close collaboration with the Atikamekw community of Manawan, the municipality of Saint-Michel-des-Saints, and Quebec’s regulatory authorities,” he added.
Located approximately 120 km north of Montreal, Metawinie is set to become the largest graphite mine in the G7 upon completion, supplying up to 106,000 tonnes annually.
Shares in NMG lifted 1.92% to $1.33 (US$0.95) apiece Monday morning in Toronto.
Environmental commitments
NMG says Metawinie has been held to a high standard of environmental performance and sustainable development since before construction began. Environmental practices included in the construction phase include onsite water reuse, biodiversity protection and co-disposal of tailings and waste rock.
The project received its environmental and social impact authorization from Quebec's environmental public hearings board (BAPE) in 2021. The company also signed an Impact Benefit Agreement with the Atikamekw First Nation of Manawan. The agreement includes the participation of the First Nation’s community in environmental monitoring and in the project’s monitoring committee.
Despite its stated and signed commitments, the project has been criticized by MiningWatch Canada, an environmental watchdog organization, for the concentration of heavy metals allegedly reported in nearby waterways.
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