Globe Metals hints at Kanyika project deadline waiver
Globe Metals says the idea of the refinery plant for the minerals from Kanyika Niobium mine has complicated the timeline for the mandatory construction deadline of the mine in Mzimba.
In an interview, Globe Metals chairperson Neville Huxham said the company will have to wait for the approval required for the refinery investment, which will determine the time for the mine construction.
Huxham said Globe Metals and Mining identified an investor for the refinery plant, saying the size of the investment will be determined by a number of mining companies that will commit to refine their mineral concentrates at the plant earmarked to be constructed in Lilongwe as a strategic location.
He said this is an industrial project, not a mining project, hence requires a different licensing processes, but was hoping the approval processes will not delay their mining investment for too long.
The Ministry of Natural Resources asked for more time when asked on the progress of the processing of the approvals of the refinery plant and the development of the Globe Metals’ mining project timeline.
Initially, the company was given a mining licence that provided 18 months to have the mine constructed and that period is ending in September this year.
“We will have to ask for a waiver on the deadline,” said Huxham.
According to him, the company brought on the table the idea of the refinery plant, which excited the government as it also promotes value-addition of raw materials.
The pilot plant, which is under construction in Johannesburg, South Africa, is expected to be commissioned this month.
A write-up Huxham shared states that the aim of the pilot plant is to produce very high purity at 99.98 percent niobium pentoxide, which will be provided to globe’s key off-takers to assess.
“Once the oxide products are produced, Globe will be well-positioned to finalise discussions with key industry off-takers, enabling a mojor advance in the development of Globe’s Kanyika project. The oxide market includes all oxide grades from standard grade to 99.98 niobium pentoxide, thus facilitating prices over $50 per kg.
Kanyika mine has the potential to become the first new globally-significant niobium mine in the 50 years, with an average production of 3 267 tonnes per year of niobium pentoxide and 136 tonnes per year of tantalum pentoxide over the 27 year lifespan.
Globe’s estimates show that it requires pre-production costs of $250 million with 23-year lifespan revenues totalling $5.6 billion, with internal rate of return of 50 percent.
