GBE, Malawi inks Mining Development Agreement for Kanyika niobium project
Globe Metals and Mining (GBE) and the government of Malawi have inked a Mining Development Agreement (MDA) for Kanyika niobium project.
Kanyika represents one of the largest niobium mineral resource in Malawi having estimated resources of 60 million tonnes of ore grading 0.29% niobium metal. Under the MDA, GBE has the right to mine niobium, tantalum, and deleterious uranium from the project and to establish a processing facility in central Malawi. This marks the first mining licence to be secured by any company in Malawi since the country enacted its Mines and Minerals Act in 2018.
Mining Development Agreement
“With this ultimate approval and final agreement in place, all parties concerned can now focus their efforts and resources on making the Kanyika project the first niobium mine in Africa and Globe the first new niobium producer in over 50 years. It has been a long journey, and it is only through the strong support of the Malawi government and local communities, and the perseverance and professionalism of Globe’s management, that the signing of the MDA has finally come to fruition,” GBE Chairwoman Alice Wong said.
Under the MDA, the Malawi Government will receive a non-diluting 10% equity interest and an option to buy another 10% upon completion of construction. The government will also receive a 5% statutory royalty on all revenue earned. GBE is required to make a decision to mine within 24 months of the MDA grant and to obtain a credit-approved term sheet from a third-party financer to secure development funds.
