Globe Metals and Mining has secured a non-binding off-take agreement with Canadian firm Neo Performance Inc for 100 percent Kanyika Niobium Mine phase one production in Mzimba District.
The agreement gives the firm the right to purchase 150 metric tonnes (MT) per annum of the mine’s refined high-purity niobium, which will pave the way for binding off-take undertakings to support its bankable feasibility study.
The company’s update indicates that the agreement provides a framework for Globe Metals and Neo to negotiate a binding off-take agreement for the supply of niobium.
Reads the update in part: “The development of the Kanyika project positions Globe Metals as a key and reliable supplier of in-demand niobium oxide to specialised industries based in Europe and North America.”
Among others, Neo, manufacturers of critical industrial materials for modern technologies, will have a right of first refusal to purchase tantalum pentoxide and zirconium on terms and conditions to be agreed upon by the parties.
Globe Metals and Mining chief executive officer Paul Smith is quoted in the statement as having said: “We are now working to quickly turn these off-take discussions towards binding agreements.
“Success here will materially support the commercial viability of the Kanyika Project and provide a significant boost to our current efforts to finalise key funding processes.”
Neo chief executive officer Rahim Suleman said: “We are laser-focused on diversifying and de-risking our supply chain, including our long-term access to critical metals.”
Geologist and mining consultant Ignatius Kamwanje said the agreement is meant to help in funding the bankable feasibility study of the project and is likely to be temporary.
Kanyika Niobium Mine has the potential to become the first new globally significant niobium mine in 50 years, with an average production of 3 267MT per year of niobium pentoxide.
