Nouveau Monde Graphite (NOU.V) announced today that it has signed an agreement with Caterpillar Inc. for the development, testing and production of Cat® “zero-emission machines” for the Matawinie graphite mine.
“I recall our first meeting with Caterpillar some two years ago, outlining our vision of a zero-emission mine in Québec. Our commitment to this vision has taken us to this very important moment, not only for Nouveau Monde, but for the global mining industry as a whole. Today, alongside Caterpillar, which in my opinion is the most trusted and reputable supplier of heavy-mining equipment worldwide, we can bring the zero-emission machines vision into reality. I think it is remarkable that Nouveau Monde, as a representative for the new style green resources industry, is part of spearheading the electrification of the industry, by collaborating with Caterpillar,” commented Arne H Frandsen, Chairman of Nouveau Monde.
Caterpillar is the world’s leading manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. According to the company’s 2020 annual report, Caterpillar achieved $41.7 billion in sales and revenues. Furthermore, In relation to the resource industry, Caterpillar amassed $7.9 billion in revenue.
Cat represents Caterpillar’s flagship brand, recognized worldwide for its superior quality and reliability. The Cat portfolio is the most extensive portfolio available in the industry, offering a variety of products including skid steers, marine engines and the company’s 1000 ton Cat 6090 mining excavator. Moreover, Cat products serve a wide range of industries including construction, mining, power generation, oil and gas, to name just a few. In addition to its conventional Cat products, Caterpillar has already developed innovative products with zero-emission capabilities. This includes the company’s 300.9D VPS & HPU300 mini excavators, which come with a choice of diesel or electric power.
“The collaboration between Caterpillar and Nouveau Monde marks an important milestone in the mining industry. Through integrated technology, machines and services, the entire Caterpillar team is proud to support Nouveau Monde as they work towards constructing and establishing their first zero emission mine,” said Denise Johnson, Caterpillar Group President.
On February 10, 2021, the Quebec Government issued a ministerial decree authorizing Nouveau Monde’s Matawinie mining project for a 100,000-tpa, high-purity graphite concentrate production. Furthermore, the Company’s world-class deposit constitutes the largest projected graphite operation in North America and Europe. In collaboration with Caterpillar, this deposit is expected to become the world first all-electric open-pit mine. Nouveau Monde plans to start early work at the mining site as of Q2 2021, and full construction is expected to begin in Q3 2021 once permits and authorization are finalized.
Nouveau Monde’s share price opened at $9.91, down from a previous close of $9.94. The Company’s shares are down -2.82% and are currently trading at $9.66 as of 2:36PM ET.