ENERGY MINERALS
Sovereign Metals announces outcomes for Kasiya Rutile-Graphite Project in Malawi
Australia-based Sovereign Metals has announced the results of the Pre-Feasibility Study for the company’s Kasiya Rutile-Graphite Project in Malawi and has confirmed Kasiya as a potentially major critical minerals project with an extremely low CO₂-footprint deliv- ering major volumes of natural rutile and graphite while generating significant economic returns.
PFS highlights ‘Market Leader’ Position in Two Critical Minerals: Positioned to become the world’s largest rutile producer at 222 000 t per annum for an initial 25-year life-of-mine (LOM). Potentially one of the world’s largest natural graph- ite producers outside of China at 244 000 t per annum. Natural rutile facing significant global supply deficit is forecast to further widen considerably in the next five years. Natural graphite market moving into deficit as demand rapidly grows in the lithium-ion battery and electric vehicle (EV) sectors. Initial Probable Ore Reserves of 538 mt declared, representing conversion of only 30% of the total Mineral Resource of Substantial production rate and mine life upside exists as the PFS modelling was limited to only 25 years. Managing Director, Dr Julian Stephens
A geologist views the ore from the Kasiya Rutile-Graphite Project in Malawi. commented: “The release of the Kasiya PFS marks another important step towards unlocking a major source of two critical minerals required to decarbo- nise global supply chains and to achieve Net-Zero. The project benefits from existing high-quality infra- structure and inherent ESG advantages. Natural rutile has a far lower carbon footprint when compared to other titanium feedstocks used in the pigment industry, and natural graphite is a key component in lithium-ion batteries – crucial to de-carbonising the global economy. The high-quality of work completed and the results of the PFS demonstrate that Kasiya is a globally significant project that has the potential to deliver a valuable long-term source of low-CO₂ prod- ucts and generate substantial economic returns with a forecast average EBITDA of $415 million per annum for the initial 25 years modelled. The project is well positioned to be a large scale, multi-generational asset with significant opportunity for further upside as only 30% of the current mineral resource (MRE) is utilised in the PFS model. Kasiya’s compelling economics demonstrate the potential for industry- leading returns, even against the backdrop of global cost inflation. The company is looking forward to conducting an optimisation review in collaboration with new strategic investor, Rio Tinto and progress- ing to the Definitive Feasibility Study.” Kasiya, located in central Malawi, is the largest natural rutile deposit and second largest flake graph- ite deposit in the world. Sovereign is aiming to develop a low-CO₂ and sustainable operation to supply highly sought-after natural rutile and graphite to global markets. Kasiya has a geological benefit with both natural graphite and rutile hosted in soft, friable saprolite material at surface that can be mined, beneficiated, and purified with a considerably lower carbon foot- print than hard-rock operations or synthetic graphite and synthetic rutile production. The proposed large-scale operation will pro- cess 24 million tonnes of ore per annum to produce
An aerial view of the Kasiya Rutile- Graphite Project.
22 MODERN MINING November 2023
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