Global Metals and Mining is set to complete off-taking agreements this quarter as it targets to start phase one construction of the Kanyika Niobium Mine in Mzimba during the first quarter of 2025.
In a virtual investor presentation on Tuesday, the Australian Stock Exchange-listed mining company, said phase one construction will cost $46 million (about K80.5 billion) and anticipates first production in the first quarter of 2026.
The company also indicated that the Environmental and Social Impact Assessment (Esia) report for the refinery plant construction will be released during the fourth quarter of this year.
Reads the presentation in part: “Capital funding requirements for phase one project development have been finalised at $46 million, inclusive of a 15 percent project contingency allocation.
“On July 25 2024, the company received a non-binding letter of intent from Ecobank Malawi for a $15 million [about K26 billion] loan facility subject to satisfactory outcome of due diligence, approval of its credit committee and execution of all formal facility and security documentation.”
The presentation, which outlined project implementation timelines after the 15-month phase one construction, indicates that the company will roll out at 10 percent of full production until the $250 million (about K437.7 billion) phase two construction is completed in the third quarter 2028.
The miner, which missed its initial rollout deadline in September this year purportedly because it wanted to include the refinery plant during phase two to add value locally, said it has started securing off-takers.
Said the firm in a statement: “On September 2 2024 the company signed a letter of intent with Affilips N.V. for up to 100 tonnes of refined high purity niobium pentoxide.”
Commenting on the new developments on Tuesday, geologist Grain Malunga attributed the company’s initial rollout delays to the refinery plant project in located Lilongwe, which required its own feasibility study.
He said now that the company has released its rollout timelines, including the refinery plant Esia report, it means by 2026 it will start contributing to the country’s gross domestic product.
Malunga, who is a mining consultant and former minister of Mining, said: “This project was complex although its mining development agreement was signed some two years ago.
“It had to involve many stages mainly because Global Metals wanted to do the refinement in Lilongwe and not in Namibia.”
He said that meant the company had to apply for a waiver of its initial rollout deadline.
“That was crucial because it means the value-addition will be done right here and increase the economic benefits,” said Malunga.
In a separate interview, geologist and mining consultant Ignatius Kamwanje described Global Metals progress as impressive, saying if the pace the country registered this year in the mining sector is maintained, three big mining companies could be operational by 2026.
“If we are talking about Global Metals in 2026, it means we will have at least three companies operating by that year, including Lotus Resources Limited and Lindian Resources Limited, which will be a significant contribution to the country’s economy and foreign exchange,” Kamwanje said.
Kanyika Niobium Mine has the potential to become the first new globally significant niobium mine in 50 years, with an average production of 3 267 metric tonnes per year of niobium pentoxide and 136 tonnes per year of tantalum pentoxide over 27-year mine lifespan.
