PERTH (miningweekly.com) – Junior Sovereign Metals has signed a memorandum of agreement (MoU) with an infrastructure consortium led by majors Vale and Mitsui, for rail freight, port access and port handling services for graphite product from the Malingunde project, in Malawi.
Sovereign said on Tuesday that the MoU covered the provision of services for up to 100 000 t/y of concentrates over a period of 20 years, with the consortium known as Central East African Railways (CEAR) to supply and maintain all infrastructure, equipment and personnel required to provide the service.
“The signing of the agreement with such reputable multinational partners is a very important step for Sovereign, and we are delighted to have such experienced operators assisting us in advancing the Malingunde project,” said Sovereign MD Julian Stephens.
“The provision of port and rail services provides a clear pathway for the reliable and efficient transport of the high quality Malingunde concentrates for sale into global graphite markets.
A scoping study into the Malingunde project estimated that the project could produce some 44 000 t/y of concentrate at a capital cost of $29-million, over an initial mine life of 17 years. The study is based on a mineral resource of 65.1-million tonnes.