Australian mining company, Globe Metals and Mining Limited, has announced to its shareholders that it is currently investigating investment opportunities outside the mining sector.
The company, whose main activity in the country is the multi-commodity Kanyika Niobium Project in Mzimba, has since said it has commenced a strategic review of the company’s business and of global investment opportunities outside the mining and metals sector.
The Kanyika project is the fifth largest undeveloped niobium resource in the world.
According to the company’s communication to its shareholders dated December 11 2015, the Perth-based company, which is listed on the Australian Stock Exchange (ASX), the outlook for the global mining sector appears sluggish.
“With the outlook of the global mining and metals industry to remain sluggish for the foreseeable future, it is imperative that the company clearly establishes and prioritise the areas in which its resources are to be utilised so as to maximise their return for shareholders,” says the company in a statement.
The company’s substantial shareholders are Apollo Metals with 52.37 percent stake and Ao-Zhong International Mineral Resources which holds 25.15 percent stakes, both based in Australia.
According to the company, Globe’s board of directors, has directed that the scope of the strategic review be broadened to include an investigation of investment opportunities outside mining industry.
In Malawi, Globe also has interests in three more sites of exploration namely the Chiziro Graphite Project, Salambidwe Project in southern Malawi bordering Mozambique and Machinga rare earth north of Zomba in southern Malawi.
The sector is currently hit by weakening prices and a sluggish outlook for demand for most metals which has in essence turned investors away from investing in the sector. n