- Globe Metals and Mining (GBE) inks a Mining Development Agreement (MDA) with the Malawi government to develop its Kanyika niobium project in the country
- This makes GBE the first company to secure a mining licence in Malawi since the enactment of its Mines and Minerals Act in 2018
- Under the MDA, the Malawi Government will receive a non-diluting 10 per cent equity interest and 5 per cent statutory royalties of all revenue earned
- Globe says with the MDA now in place, all relevant approvals have been received to allow it to develop the project
- GBE shares are up 19.1 per cent and trading at 10 cents at midday AEDT
Globe Metals and Mining (GBE) has entered into a Mining Development Agreement (MDA) with the Malawi government to develop its Kanyika niobium project in the country.
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.
It marks the first mining licence to be secured by any company in Malawi since the country enacted its Mines and Minerals Act in 2018.
Globe said with the MDA now in place, all relevant approvals had been received to allow it to develop the project.
“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,” GBE Chairwoman Alice Wong said.
GBE said that a new niobium mine would greatly alleviate the current geographic concentration of major niobium suppliers, with two in South America and one in Canada.
“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,” Ms Wong said.
Under the MDA, the Malawi Government will receive a non-diluting 10 per cent equity interest and an option to buy another 10 per cent upon completion of construction. The government will also receive a 5 per cent 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.
The company said it would commence mining within six months after final decisions after reaching a decision to mine.
GBE shares were up 19.1 per cent and trading at 10 cents at midday AEDT.