Globe Metals & Mining’s plans for its Kanyika niobium project have received a vital boost with the Malawian Government backing its anticipated roll-out for substantial mine development and production.
Management says representatives from the Malawian Government also recently visited the mine site and believes their support greatly enhances Globe’s efforts to increase the security of tenure for its mining licences.
We welcome the update from the Commissioner, acknowledging the security of tenure for the mining licence and recognising our commitment to the project and progress to date. This is a key milestone in satisfying one of the conditions of the MDA within our previously stated timelines. Globe Metals & Mining chief executive officer Grant Hudson
The company also received the backing of Malawi’s Minister of Mining Monica Chang’anamuno and Minister of Energy Ibrahim Matola, who were part of the recent site visit. It culminated in Minister Chang’anamuno pledging to expedite the connection of the mine site to the local electricity grid.
A feasibility study completed by the company in 2021 outlined an impressive total EBITDA figure for a fully-developed operation of US$3.74 billion (AU$5.62 billion) across an initial mine life of 23 years.
Globe is aiming to produce high-purity niobium pentoxide and tantalum pentoxide powders from a JORC-compliant total resource of 68.3 million tonnes using a cut-off grade of 1500 parts per million niobium pentoxide.
The proposed mining and processing operation at Kanyika is expected to churn out about 11,300 tonnes of niobium and tantalum concentrate per annum on the back of newly-unveiled proved and probable ore reserves of 33.8 million tonnes, grading an average 3048ppm niobium pentoxide and 141ppm tantalum pentoxide.
Niobium is a game-changer for lithium-ion batteries, with its ability to increase the life of a battery and decrease its charge time and fire risk.
Globe’s potential mine could be the world’s first of its kind in 50 years and would only be the fourth one operating, with two currently in Brazil and one in Canada.
The commodity has been the common denominator in several impressive stock market charges for ASX-listed companies in recent months. High-grade niobium in assay results at the start of May saw WA1 Resources’ share price go from $2.27 on the day of the announcement to as high as $6.46 during today’s trading.
Reach Resources is another to ride the niobium rocket. The WA explorer unveiled niobium at the start of the month at its project in the Gascoyne region and saw its share price double. Its stock was changing hands for 0.08 of a cent on June 1 and is today going for 0.017 cents.
With the market clearly in the mood for niobium, it also appeared to respond well to Globe’s latest development with its share price popping more than 7 per cent to a high of six cents during intraday trading. Who knows where it could reach once the project really starts rocking!
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