MDAWhy has it not been signed.There have been a number of...

MDA

Why has it not been signed.

There have been a number of arrests and allegations of corruption recently that have impacted on the workload of the Attorney Generals office. A number of companies not just Globe are awaiting documents to be signed off.

When is it expected to be signed off.

Grant was confident it would be delivered sometime in Q1 2023

It is not currently deemed as high a priority at this point in time due to the funds raised in the cr are going to move the project forward rather than the project waiting for the MDA.

CDA

There are a number of communities that are entitled to benefit from the CDA which will be funded by a percentage of revenue. Globe have decided not to run the CDA themselves as they predict this would cause ongoing problems each time one community was given funds over another. The CDA will be run by a trust to be setup. Globe will fund the trust and then have no further involvement, the administrators of the trust determining where the money is allocated.

The outline of how it will work has been agreed by all parties but the detailed document is outstanding. Globe plan to deliver a completed agreement well in advance of mining starting in 2024.

Next CR

The next cr would be to finance the construction of phase 1 , no mention was made of any other method of funding but Grant did not dwell on this point.

Relocation

The affected people will all be relocated prior to the construction phase and is not impacted by the phased approach to mining. It was stated they are expecting to be relocated and no issues have arisen that could be problematic.

Green Power plan

The two major issues in the past for the project have been transport and the availability of power to run the project. A South African guy whose name I forget took over from Grant and explained the power plan they have come up with for all the phases of the project.

The solar farm will provide power for phase 1 which has been known for some time. A river runs through the area and 2 hydro turbines will be purchased to generate power through the months where the river holds water.

96% of Malawi power comes from Hydro, the grid will not have sufficient capacity to provide power to the mine during morning and evening peaks or during the day. However, they are more than happy to have a big power user during the night time off peak hours.

The minesite will have 2 dams, a large dam and a smaller dam, the larger dam has been designed to be 2 metres higher than originally thought and this will allow Globe to provide irrigation for crops which will include the crops that will provide biomass products in turn processed and used to create power. Irrigation will allow the local population to create an extra crop per year resulting in more power from this source for Globe and more revenue for the local population.

This fuel will be supplemented with the use of Diesel as and when required which is the only element of the power package that doesn’t use green power.

Radioactive material

There are 2 at least 2 uranium mines in Namibia and the radioactive material will be processed by these companies and blended into their products. Namibia has long established processes for dealing with this material so no problems are envisaged.

Product feedback

Sample oxide using the proposed process have received positive feedback from the prospective customer base and it was also stated that they did not anticipate any problem taking the full production amounts from phase 1 of the mine.

Niobium in the spotlight

Grant mentioned that a search for Niobium in Battery production would have returned the odd hit only a couple of years ago but now many hits will be returned and it is very much becoming a product that makes headlines.

He briefly mentioned WA1 which is a very early stage project and much different to Kanyika, Grant described Kanyika as “cheap mining”, you remove the vegetation and you have Niobium on your shoes. It has however highlighted Niobium on the ASX which everyone agreed can only be a good thing in the future.

The stated aim was for GBE to be a producer in 2024 and they where all very optimistic which I doubt was for the benefit of the audience as that was just myself. The session lasted for about one hour after the presentation had been given and I was impressed not just by the content but also that 4 senior people where happy to invest their time for a lone shareholder.