Globe Metals and Mining is one step closer to sealing a mining development deal for its Kanyika niobium project with the Malawi Government after a review and recommendation for approval by a steering committee.
The company says it has received confirmation from the Malawi Ministry of Mining that negotiations and the review of the draft agreement have been completed.
It says the Malawi Ministry of Justice is now vetting the final draft agreement to be submitted to the Minister for Mining and the Minister for Finance for approval and signing.
Whilst the latest update is a positive step for Globe, the process is yet to be finalised and the formal agreement and signing is at the discretion of the relevant ministers.
The explorer says the government’s steering committee has recommended approval.
Globe is aiming to produce high-purity niobium pentoxide and tantalum pentoxide powders from a JORC-compliant total resource of 68.3 million tonnes using a cut-off grade of 1500 parts per million niobium pentoxide.
A feasibility study completed last year outlined an impressive total EBITDA figure for a fully developed operation of US$3.74 billion across an initial mine life of 23 years.
Globe Metals and Mining Chief Executive Officer, Grant Hudson said: “It is highly pleasing that real progress towards finalisation and execution of the MDA is being made by the Malawi Government. The conclusion of the MDA is a critical step forward towards production as it provides Globe and its potential partners, financiers and customers with clarity and surety around tenure, developmental timelines and the fiscal regime pertaining to the Kanyika niobium project.”
Niobium is a ductile refractory metal, very resistant to heat and wear. Like tantalum, it is resistant to corrosion due to the formation of a surface oxide layer.
Up until recently about 90 per cent of the world’s niobium has been used by the steel industry, predominantly as a micro alloy with iron.
However, Globe says the metal has become increasingly important to the electric vehicle industry, with niobium batteries achieving ultra-rapid re-charge and improved range capabilities.
Metallurgical and beneficiation optimisation works at Kanyika has led to the development of new technology that has the potential to lower operational and capital costs at the project, improve metallurgical recovery and reduce the environmental impact of the operation.
Last year the company applied for a novel patent for the process.
The explorer says it first discovered the Kanyika deposit in 2006 after ground radiometric surveys, soil and rock-chip sampling and geological sampling.
Globe completed 19,396m of RC drilling and 2984m of diamond drilling between 2007 and 2008 before announcing its JORC-compliant mineral resource estimate.
In 2020 the global mine production of niobium was estimated at 78,000 tonnes, with Brazil and Canada contributing the majority of the metal.
Globe Metals and Mining says the proposed mining and processing operation at Kanyika is positioned to become Africa’s first niobium mine.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
