The two parties have signed a collaboration and benefit-sharing agreement covering the entire commercial operating life of the mine.
While Nouveau Monde said it had worked with the community starting from the exploration phase, local stakeholders requested a formal deal based on sustainable development principles.
Based on this agreement, Nouveau Monde will contribute up to 2% of its net cash flow after taxes to the municipality to boost community spinoffs and reinvestment. An annual advance payment of C$400,000 (US$303,406) will also help the municipality prepare and upgrade, if necessary, its infrastructure prior to the start of the mine's operation.
The municipality will also have the chance shape and monitor the project through a liaison committee, which is complementary to the monitoring committee.
Nouveau Monde said it would also contribute 1% of its net cash flow after taxes to a ‘Community Fund for the Future' to help stimulate developmental projects in Upper Matawinie.
The local population will also have access to training, employment and business opportunities.
Saint-Michel-des-Saints is located 150 kilometres north of Montréal in Quebec. The Matawinie graphite project, due to come online in 2022, will operate as an all-electric open-pit mine.