Globe Metals & Mining Limited (ASX: GBE) (“Globe” or “Company”) is pleased to announce that it has successfully formalised the planned extension of time for first mining activities under its Mine Development Agreement with the Government of Malawi (MDA).
This extension ensures that Globe remains in full compliance with all aspects of its mining agreements, licences, and permits, and further confirms the ongoing support from Malawi’s favourable mining jurisdiction. The need for the extension had been understood and planned for as the previous timelines had become truncated after the slight delays around the finalisation of the MDA.
The extension now confirms the ongoing detailed planning for the appropriate Community liaison for the first development of mining activities. It also confirms the ongoing detailed feasibility planning that Globe is undertaking.
Extension approval signed by Malawi authorities
On 17 September 2024, the Director General of the Mining and Minerals Regulatory Authority, S.N.D. Sakhuta, signed a letter of comfort approving the request to extend the commencement date for substantial mine development to 27 September 2025.
This decision aligns with section 169(7) of the Mines and Minerals Act 2023, which makes provision for such extensions upon formal application by the licence holder, provided that good faith efforts are demonstrated.
Background
As previously announced, the MDA is subject to and conditional upon Globe obtaining an extension to the time limits prescribed under the Act for the commencement of substantial mine development and substantial mineral production at the Company’s Kanyika Niobium Project (Project) to ensure those time limits are consistent with the timeline contemplated in the MDA.
As announced in mid-June 2023, Globe was in receipt of a supportive letter from the Malawi Government Department of Mines on 29 May 2023, endorsing the ongoing efforts of Globe to acquire and mobilise resources for the Project, and assuring the continued security of the tenure for Mining Licence LML0216/21 (Mining Licence).
The letter stated that there is a reasonable expectation that mine development would commence 18 months from the date on which the MDA was signed (29 March 2023), rather than the original period of 18 months from the grant of the Mining Licence (13 August 2021). On 10 June 2024, an extension was requested in relation to the commencement of substantial mine development at the Project.
Globe’s Chief Executive Officer, Paul Smith, commented:
“Globe Metals & Mining is extremely grateful for the proactive and supportive relationship it enjoys with the Government of Malawi. The Government’s willingness to approve an extension of time for commencement of substantial mine development at our Kanyika Project is a clear-cut positive for its development. The extra time provided by the extension gives us ample time to successfully progress several significant processes critical to the Project’s eventual delivery. Some of these important processes are sign-offs on funding initiatives and offtake commitments, completion of technical (design and engineering) tasks, and, last but not least, delivery of key social and environmental commitments associated with the Project.”
