Pomerleau wins NMG Construction Management Preparation Contract
Nouveau Monde Graphite Inc. furthers its execution readiness for the construction of its Phase-2 commercial facilities, the Matawinie Mine and the Bécancour Battery Material Plant, with the appointment of Pomerleau as Construction Manager for the pre-construction stage.
With sustained engagement from tier-1 battery manufacturers to sign offtake agreements and confirmed interest from lenders and strategic investors to participate in NMG’s project financing, the Company is accelerating efforts to refine its execution plan for cost optimization, procurement, and construction at each site ahead of the final investment decision (“FID”).
Arne H Frandsen, Chair of NMG, declared: “Our strong owner’s team in engineering and project management now paired with experienced construction firm Pomerleau provides depth and technical expertise for refining our execution strategy. Amidst challenging economic conditions, we are seeking strategies to mitigate the expenses and uncertainties associated with complex construction projects to execute our projects responsibly while delivering on our commitment to our customers, community, and shareholders.”
Eric Desaulniers, Founder, President and CEO of NMG, said: “As battery production capacity continues to expand in Québec, North America and Europe, our commercial engagement is shifting from product qualification to execution and operation readiness to optimize our time-to-market window. Potential customers have tested our carbon-neutral active anode material produced at our Phase-1 facilities and are eager to access sizable volumes to support their manufacturing and growth. Contemplated anchor customers, lenders, and investors alike are seeking reassurance on our timeline and flawless execution with safety, environment, and quality as top priorities. We have found in Pomerleau a construction partner that shares our values and is keen to help us bring our vision to reality.”
Pomerleau is a prominent Canadian construction company specialized in the building, infrastructure and civil, and construction sectors. With a rich history spanning early six decades, Pomerleau boasts a workforce of over 4,000 dedicated employees and operates across more than 200 job sites across Canada with a strong focus on safety, innovation, and sustainability.
Projects Construction Overview
Leveraging process development, continuous sample production at Phase-1 facilities, environmental monitoring and management, and extensive site and project studies, NMG has made steady progress over the years toward construction and financing of its Phase-2 Matawinie Mine and Bécancour Battery Material Plant.
The Matawinie Mine has already obtained governmental approval – the main permit for the mining operation – following an exhaustive environmental review and public consultation. Since securing this approval, NMG has carried out preparatory work to build the nearly 8-km access road, construct key environmental infrastructure and execute early civil works. Detailed engineering for the industrial, mining and environmental facilities is also well advanced thanks to continued work with specialized firms AtkinsRéalis, SRK Consulting, and key contractors and equipment vendors. The site is now ready for major civil works including excavation, underground utilities, and concrete foundations once FID is reached.
Pomerleau’s mandate covers the pre-construction management of the industrial facilities, namely the concentrator, crusher, and associated infrastructure. Pomerleau is working closely with NMG’s project team to prepare a detailed construction sequence and schedule, to develop the contracting strategy, to optimize worksite logistics, to expand the health and safety, environment, and quality programs, and to integrate planning and engineering into Building Information Modeling (“BIM”), an advanced technology solution supporting enhanced project construction management for improved planning, tracking, project efficiency, productivity, and cost control.
At the Bécancour Battery Material Plant, the pre-construction mandate will build on the environmental studies completed thus far and active engineering work with BBA Inc. Pomerleau’s mandate includes construction scheduling, workforce planning, jobsite logistics, revision of the procurement strategy, and the development of health and safety, environment, and quality programs.
Pomerleau is also contributing to the budget revision, cost optimization, and project control activities for both projects. NMG aims to refine CAPEX estimates in light of advanced engineering and contemplated offtake agreements, and to reduce its exposure to market volatility and supply chain pressures. Considering that NMG’s integrated feasibility study for its Phase-2 operations was issued in July 2022 at the peak of inflation trends, the Company anticipates optimization of construction forecasts in light of stabilizing material costs, technological enhancement to align with customers’ specifications, synergies between the two sites proactive procurement strategy plus Pomerleau’s current construction mandates in the Bécancour industrial work.
Having retained Pomerleau for both projects provides saving opportunities and a harmonized project execution across sites thanks to core team, programs, and approach, enhancing the integration of engineering, procurement and construction management. NMG will also benefit from Pomerleau’s established pool of workers and specialty subcontractors in preparation for the execution stage.
NMG’s robust environmental, social, and governance (“ESG”) values, aligned with Pomerleau’s own, will be carried over in the construction phase and will be reflected in the procurement strategy. NMG is committed to upholding the highest standards of business ethics and human rights, to promoting best practices in occupational health and safety and environmental protection, to using proactive and innovative design, technology, and management to minimize the impact of its activities, and to working in collaboration with communities and First Nations to maximize local benefits.