Photo by: Sovereign Metals
Name of the Project
Kasiya rutile/graphite project.
Location
Central Malawi.
Project Owner/s
Sovereign Metals and Rio Tinto.
Rio Tinto invested in Sovereign in July 2023, resulting in an initial 15% shareholding and options, and expiring within 12 months of initial investment, to increase its position to 19.99%. Under the investment agreement, Rio Tinto will provide assistance and advice on technical and marketing aspects of Kasiya, including on Sovereign’s graphite co-product, with a primary focus on spherical purified graphite for the lithium-ion battery anode market.
Project Description
Kasiya is the biggest natural rutile deposit and second-largest flake graphite deposit in the world.
A prefeasibility study has confirmed a potentially major critical minerals project, with an extremely low carbon dioxide footprint delivering significant volumes of natural rutile and graphite while generating significant economic returns.
The proposed large-scale operation will process 24-million tonnes of ore a year to produce an estimated 245 000 t of natural rutile and 288 000 t of natural graphite a year at steady state, for an initial mine life of 25 years.
The project is positioned to become the world’s biggest rutile producer at 222 000 t/y, and one of the world’s biggest natural graphite producers outside of China at 244 000 t/y, for an estimated life-of-mine of 25 years.
Potential Job Creation
Not stated.
Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at an 8% discount rate, of $1.61-billion and an internal rate of return of 28%, with a payback of 4.3 years from the start of production.
Capital Expenditure
Capital costs to first production are estimated at $597-million. Expansion capital is estimated at $287-million.
Planed Start/End Date
Not stated.
Latest Developments
Sovereign Metals has appointed specialist social performance consultancy SocialEssence to assist in the continued development of the company’s stakeholder relations, social performance objectives, and its community and social responsibility (CSR) framework.
SocialEssence will design and conduct social performance activities during the definitive feasibility study (DFS) phase of the Kasiya project; prepare Kasiya’s social-impact assessment and its management plan for the DFS and permitting.
It will also design, implement and manage social performance activities, including stakeholder engagement and the development of key relationships.
Further, it will prove the feasibility of critical social performance measures (including early local content, and piloting of livelihood restoration programmes, and piloting of rehabilitation activities to restore land for agricultural use) and align with Sovereign’s environmental, social and governance framework.
Key Contracts, Suppliers, and Consultants
SocialEssence (continued development of Sovereign’s stakeholder relations, social performance objectives and its CSR framework).
Contact Details for Project Information
Sovereign Metals, Tel +61 8 9322 6322, or email info@sovereignmetals.com.au.