Globe Metals & Mining (GBE) announced that it has been formally granted a mining licence for the Kanyika niobium project in Malawi from the country’s Ministry of Mines.
The company, through its Malawian subsidiary Globe Metals & Mining (Africa), will develop what is being touted as the first niobium mine in Africa with an investment of $250m.
The Kanyika niobium project includes a refinery, which is expected to see a capital expenditure (CAPEX) of $50m.
Globe Metals & Mining said that it has all approvals in place to immediately launch construction after securing funding and relocating impacted persons.
Globe Metals & Mining managing director Alistair Stephens said: “This is a momentous achievement for the Republic of Malawi and its people, the Kanyika community, the Company and the Kanyika Project. The grant ushers in a new era for the Malawi mining industry with the first ever award of a large-scale mining licence under the new Mines Act.
“It also ushers in a new era for niobium, with Kanyika set to become the first new niobium mine in more than 50 years, subject to financing, off-take and construction.”
Located in central Malawi, the Kanyika niobium project will yield nearly 260,000 tonnes of niobium and tantalum concentrate through its 23-year life of operations. It will have an average yearly production of around 11,300 tonnes.
The mine life could be extended to 38 years, depending on the conversion of inferred resources by further drilling, said Globe Metals & Mining after releasing a project feasibility study.
The open-pit niobium mine is located nearly 250km north of the Malawian capital Lilongwe. As per a mineral resource estimate (MRE) in 2018, the mine consists of 68.3 million tonnes of mineralisation with a grade of 2,830 ppm Nb2O5 and 135 ppm Ta2O5.
According to Globe Metals & Mining, the niobium and tantalum concentrate from the mine will be transported to the associated refinery where it will be processed into a marketable product. The company said that more than 90% of niobium is used for manufacturing high strength alloy steels.
The refinery will produce niobium and tantalum products of high-purity and high-quality as per the specifications of customers, said the African-focused resources company based in Australia.
