Metals Australia Ltd is progressing pre-feasibility studies for its Lac Carheil Graphite Project in Quebec, aligning with the province’s new strategy to accelerate critical minerals development. The project’s expanded resource and downstream battery material plans position it well for North American markets.
- Significant resource expansion to 24.8 Mt indicated at 11.3% graphite
- Pre-feasibility studies underway for 100,000 tpa flake graphite plant and 75,000 tpa battery anode refinery
- Quebec government unveils strategy to fast-track critical minerals projects
- Strong market pricing forecasts for graphite concentrate and battery-grade products
- Advanced environmental, tailings, and water management plans nearing completion
Project Expansion and Study Progress
Metals Australia Ltd, through its Canadian subsidiary Northern Resources Inc., has provided a comprehensive update on the Lac Carheil Graphite Project in Quebec, Canada. The project has seen a substantial increase in its mineral resource, now boasting an indicated resource of 24.8 million tonnes at 11.3% total graphitic carbon (TGC), a more than threefold increase from its maiden resource. This expansion underpins a revised mine plan and supports a project life estimated between 20 to 25 years.
Pre-feasibility studies (PFS) are well advanced for both the upstream open-cut mine and a 100,000 tonnes per annum flake graphite concentrate plant. Concurrently, a scoping study for a downstream Battery Anode Material (BAM) refinery with a 75,000 tonnes per annum processing capacity is progressing, aiming to produce over 50,000 tonnes of coated spherical purified graphite (CSPG) annually. These studies are expected to be published in the first half of 2026, providing detailed insights into capital expenditure (CAPEX), operating costs (OPEX), and project economics.
Strategic Alignment with Quebec’s Critical Minerals Plan
The timing of Metals Australia’s project development coincides with Quebec’s newly announced Critical & Strategic Minerals Plan, which aims to position the province as a global leader in the energy transition by accelerating mineral projects and developing the full value chain. The plan includes infrastructure and logistics support, regulatory streamlining, and partnerships, all of which are expected to benefit the Lac Carheil project.
Quebec’s government commitment, backed by an $88.1 million budget, focuses on improving the business environment, deploying strategic infrastructure, and engaging indigenous and local communities. This supportive policy environment enhances the project’s prospects for timely approvals and development.
Market Outlook and Product Suitability
Market studies conducted by Lone Star Technical Minerals and pricing forecasts from Fast Markets indicate robust demand and pricing for both flake graphite concentrate and CSPG products. The average forecast price for flake graphite concentrate is approximately $1,445 USD per tonne over the 2029-2050 period, while CSPG prices are projected between $9,879 and $10,470 USD per tonne in North American markets.
Laboratory test work confirms that Lac Carheil’s graphite is well suited for battery applications, demonstrating excellent electrochemical performance, high first cycle efficiency, and stable cycling behaviour. These results validate the technical feasibility of producing high-quality battery anode materials, a critical component for lithium-ion batteries in electric vehicles and other technologies.
Environmental and Infrastructure Considerations
Environmental and regulatory studies are progressing, with tailings management plans focusing on dry tailings co-deposition to minimize water impact. Water management designs and social impact assessments involving indigenous and local stakeholders are also underway, reflecting a comprehensive approach to sustainable development.
Transportation logistics remain a key focus, with options for rail and road freight being evaluated to optimize costs and infrastructure use. The project benefits from proximity to upgraded highways and potential rail connections, although capital investment may be required to enhance rail capacity.
Looking Ahead
Metals Australia is on track to deliver its PFS and scoping study results in early 2026, which will provide the market with a clearer picture of the project’s economic potential. The company’s strategic positioning within Quebec’s supportive critical minerals framework, combined with strong market fundamentals and technical validation, sets the stage for advancing Lac Carheil as a significant supplier of battery-grade graphite in North America.
Bottom Line?
With studies nearing completion and government backing, Lac Carheil is poised to become a cornerstone of North America’s critical minerals supply chain.
Questions in the middle?
- What will be the final capital and operating cost estimates from the upcoming pre-feasibility studies?
- How will transportation infrastructure investments impact project economics and timelines?
- What are the prospects for securing offtake agreements and financing amid evolving market conditions?