Mining & Trade News

Civil Society Organization (CSO) operating in the extractives sector under the banner of Natural Resources Justice Network (NRJN) convened a district alternative mining indaba in Balaka aimed at giving local and affected communities an opportunity to appreciate mining processes, laws and benefits in the mining sector.

The meeting which was organized under the theme of ‘Promoting Unity and Collaboration to Safeguard Mining Benefits’ attracted officials from the Ministry of Mining, Malawi Extractives Industry Transparency Initiative (MWEITI) Secretariat, Civil Society Networks, Traditional Leaders and members of the local community including women and youth.

Coordinator for Natural Resources Justice Network (NRJN) Kennedy Rashid said the meeting was organized upon realizing the community engagement gap in the districts, which hosts a number of mining projects.  

Rashid said: “The meeting was organized to give an opportunity to communities that have not been able to engage with duty bearers. Basically, also to give them a chance to appreciate the benefits and illicit financial flows that are happening within their areas.”

“There are so many mining activities that are happening within their areas but they are not benefitting.”

Director General for Mining and Minerals Regulatory Authority (MMRA) Samuel Sakhuta lauded the meeting saying it is essential in ensuring that mining activities benefits the locals.

Sakhuta also said the meeting has exposed him to some of the challenges that the communities are facing and pledged to address them as soon as possible.

He said: “The importance of this meeting cannot be overemphasized. It has managed to put together thoughts of the government, the people and even the CSOs themselves on how mining is supposed to be done.”

“It has clearly shown that many companies here are not in good relationship with the communities and there is lack of intervention from us, government.”

Sakhuta said some of the disputes are minor but by taking too long to address them, government has made the situation worse.

“My commitment is to address those issues very soon as mining is not there to victimize people,” he said.

Representative for Malawi Extractives Industry Transparency Initiative (MWEITI) Secretariat, Leonard Mushani, applauded the organizers for the meeting saying it acted as a platform for sensitizing the communities on EITI standards and achievements made by the body.

Mushani said: “This meeting is very significant to MWEITI because for the very first time we have seen people and CSOs going through and analyzing our reports in different ways telling us the challenges, and what we have done well which is very encouraging.”

“Since we became a member of EITI in 2015, it has been difficult for us to reach out to communities with our reports, and we feel such indaba has come at an opportune time as we have just finalized the seventh report. Representing Senior Chief Chanthunya, Scale Mose said the indaba is an eye opener to the entire community.

There are exciting features in the Mine Development Agreement (MDA) that the Malawi Government signed with Lancaster Exploration a subsidiary of UK firm Mkango Resources for the Songwe Hill Rare Earth Mining Project in Phalombe, which symbolises hope that Malawians including the local community will enjoy ample benefits from the future mining operation in accordance with the country’s laws.

Going through the MDA, it is clear that the mining company is respecting the Malawi laws as it has committed to conduct its operations and pay taxes and royalties as prescribed in the laws, and has not raised any issues of tax exemptions that dwindle amounts of revenue collected by government.

“The two parties agreed that the provision of the tax legislation shall apply,” reads the MDA.

It also states that the Company will pay according to the Malawi tax legislation a royalty of 5% of the Gross Revenue at Mine-Gate.  

“The Royalty base will be calculated as the proceeds that the Company receives through the sale of Mine Product into the spot market or contract as appropriate for each sale, net of post Mine-Gate costs.”

The MDA states that the company will pay Capital Gains taxes which shall be charged where a gain has been realised by the company which is the reporting company in Malawi.

The agreement also gives the State the right to acquire up to 10% free equity in the mine, which will permit the State to exercise 10% of the voting rights for the mining project.

Community, employment and procurement

In the MDA, the Company agrees to implement a Community Engagement Plan that complies with the Law and to the extent practicable, embraces the concepts outlined in Malawi’s Community Engagement protocol.

In addition, above and beyond Malawi legislation during the first five years of normal operations the Company agrees to a minimum employment guarantee to engage not less than 150 Malawian citizens It should be noted that there are also guarantees for all unskilled labour to be a minimum 100% Malawian citizens, 75% Skilled and Highly Skilled during production and 90% after 10 years commercial production.

The Company shall also train its Malawian employees for the purpose of improving their skills and knowledge consistent with the Mines and Minerals Act.

“The Company shall establish and update an employment and training plan that is consistent with the Mines and Minerals Act,” reads the MDA.

Tender criteria

  The Agreement says the Company shall develop a goods and services procurement plan and a business development assistance plan consistent with the Mines and Minerals Act.

“These plans shall address how to engage local businesses in the supply of goods and services where competitive,” the MDA reads.

Public response

In views sought from our readers including taxation experts; while commending the MDA for Songwe Hill, they also express some concerns regarding the royalty based on the net earnings after deducting costs including transport expenses from the gross sum realised from the sales of the minerals.

The commentators say such a method of collecting royalties may result in government earning reduced as well as the potential risk of cost inflation and difficulties for tax administrators to verify the costs arguing that the best arrangement is to calculate the royalties based on the sales contract.

In a written response, National Coordinator for the Natural Resources Justice Network (NRJN) Mr. Kennedy Rashid also hailed the Songwe Hill agreement on issues of taxation and levies saying it has been aligned with national laws. He describes the deal as a win-win situation if the parties adhere to the agreed terms.

Rashid said: “On a positive note while looking at the agreement and considering the model that was used, if the agreement can be adhered to, it gives assurance to the country in retaining a direct share in Songwe Hill revenues. “ “The corporate income tax has remained at a standard rate which aligns with national taxation laws, ensuring consistent government revenue generation.”

 “These terms show promise but several elements such as the royalty rate, community development agreement, and environmental safeguards warrant public scrutiny in their implementation.”

In terms of value realization, Rashid said that the MDA lacks obligations for on-site beneficiation, risking that Malawi will export raw concentrate. However, we have learnt that this is not an issue as the Songwe Rare Earth Mine, a ~ 400 million USD investment will have on site beneficiation as well as a Hydro-Metallurgical plant which will be producing a value add, high value Mixed Rare Earth Chemical Carbonate which can be exported and sold into international markets and provide significant FOREX revenues into Malawi.

He also said NRJN remains concerned about government enforcement capacity and transparency of the environmental management plan saying there is no clarity on environmental bonds requirement. However, the MDA clearly states that the company shall comply with all the Environmental Laws of Malawi and it should be noted that Mkango has gone above and beyond these and has already completed a full Environmental Social Health Impact Assessment (ESHIA) to World bank equator standard, which is signed off and approved by the Malawi Environmental Regulatory Authority (MEPA). It should also be noted that there is actually clarity with regards to the Environmental Performance Bond which shall be equal to the greater amount specified as being necessary for reclamation works in the Bankable Feasibility Study and the Rehabilitation and Mine Closure plan.

Rashid felt that state equity is low at 10% and as a country Malawi seems to have offered a low royalty rate without consideration of the type of mineral that will be mined which can potentially affect value realization and deprive Malawi of revenue gains.

To ensure further long-lasting benefit to Malawi, NRJN has made a number of recommendations including: tying royalties to the market performance to ensure that Malawi captures more value if rare-earth prices rise; review government equity in the project; introduce Community Development Agreement (CDA) independent oversight mechanisms; and strengthen environmental governance through pollution mitigation bonds managed by regulatory bodies.

However, Coordinator for Chamber of Mines and Energy Dr. Grain Malunga, who is a leading Malawian Mining Specialist and a former Minister of Natural Resources, Energy and Mining said in an interview that Malawians do not have to worry on benefits from the future Songwe mining operation to the Malawi economy since the country’s royalty rate is very much internationally competitive and rightly calculated on mine gate price.

“Please let all stakeholders be investor friendly and reasonable on benefit sharing with the intention of attracting mining investment and continuously attracting exploration capital,” said Malunga.

But NRJN urges the Government to take a proactive stance in implementing and supporting the Mining Development Agreement to ensure that the agreement transitions into a truly transformative project, catalyzing industrial growth, community empowerment, and sustainable mineral wealth for generations. 

As Malawi votes in general electios to elect President, Members of Parliament and Ward Councillors on September 16, election fever has gripped the minerals sector with many players hoping that the newly elected administration will address numerous bottlenecks hindering the growth of the sector.

State President Lazarus McCarthy Chakwera who will lead the governing Malawi Congress Party in the polls is facing strong challenge from immediate past President Peter Mutharika who is leading the main opposition Democratic Progressive Party (DPP), former Reserve Bank Governor Dalitso Kabambe representing UTM Party, former President Joyce Banda of People’s Party and former cabinet minister Atupele Muluzi of the United Democratic Front in an election where a total of 22 presidential hopefuls collected nomination papers from the Electoral Commission.

 Malawi’s political party manifestos are aligned to the national vision Malawi 2063 which has agriculture, mining and tourism as the main enablers of economic development implying that all the political administrations that have the chance to take over government through the polls will prioritise mineral sector development to spur industrial development alongside agriculture.

Malawi has no large scale mine in operation with the only large scale mine that opened after the country’s attained Independence from the British Colonialists in 1964, the Kayelekera Uranium Mine in Karonga, set to resume operations this month.

ASX-listed Lotus Resources is at an advanced stage to resume yellow cake production from the mine which previous owner Paladin opened in 2009 but put it under care and maintenance in 2014 following a sharp decline in the prices of the energy mineral on the world market in light of the Fukushima Nuclear disaster which resulted in the closure of a number of nuclear reactors mostly in Asia.

The minerals sector expects the coming administration to support the opening of Kayelekera and other large-scale mines in pipeline such as Kasiya Rutile-Graphite in Lilongwe, Kangankunde Rare Earth in Balaka, Songwe Hill Rare Earth in Phalombe and Kanyika Niobium in Mzimba.

Investors in these large-scale mining projects have mostly complained of delays by the Government to issue important documents such as licenses, permits and conclude negotiations on mining development agreements.

There have also been complaints from medium scale miners in cement and coal production who seek protection from government from unfair competition from imports that are threatening survival of their businesses.

The other main concern for the oncoming political administration to look at in order to develop the minerals sector is the issue of power supply disruptions which has remained a thorn in the flesh for the industry for many years.

There are also expectations that Government will support development of the Artisanal and Small-Scale Mining (ASM) by formalising the sector, offering business and marketing training to the miners, and setting up a development fund to provide financial support to the ASMs in form of loans so that they are able to use advanced equipment for extraction and value addition of minerals. 

ASX-listed Globe Metals & Mining has announced the promotion of Ms Lisungu Chirwa to Managing Director of its wholly owned local subsidiary Globe Metals & Mining Africa, which operates the Kanyika Niobium Mining Project in Mzimba.

Globe says in a Press Statement that this decision underscores its commitment to local leadership and enhancing in-country capabilities.

In her role as Finance Director of the Malawian entity, Chirwa played a crucial part in negotiating the Mining Development Agreement (MDA) with the Government of Malawi and led the community engagement process for the signing of the Community Development Agreement (CDA).

The firm states that these achievements reflect her strong leadership and stakeholder engagement skills.

Chirwa also serves on the Board of Directors and acts as the Company Secretary of Globe Metals & Mining Africa Limited, demonstrating the trust placed in her by both the Company and its stakeholders.

Globe says in the statement that her promotion marks a significant milestone in Globe’s development journey and highlights the company’s ongoing strategy to empower local leaders and strengthen its operational roots in Malawi.

Globe’s Interim Chief Executive Officer, Charles Altshuler, comments: “Lisungu’s promotion to Managing Director is both well-deserved and strategically vital. She has been a cornerstone of Globe’s operations in Malawi for over 15 years, demonstrating exceptional leadership, integrity, and profound local insight.”

“Her contributions to shaping our agreements with government and communities has been critical to the success of the Kanyika Project. I am confident she will continue to lead with distinction as we enter into our next phase of development. This appointment reinforces our commitment to fostering strong in-country leadership and ensuring Globe’s future is guided by those who understand the local context best.”

As part of its ongoing non-binding discussions on the Kanyika Niobium Project with strategic partners including potential off-takers, funders, and mining, engineering, and construction firms; Globe Metals has decided to implement the Early Contractor Involvement (ECI) approach, which promotes early collaboration with these strategic partners.

Consequently, the Company will delay the release of the Bankable Feasibility Study (BFS) to ensure that the final design and budget include improvements identified from the ECI and is aligned with current market conditions.

  Globe’s Interim Chief Executive Officer, Charles Altshuler, comments: “We continue to believe strongly in the fundamentals of the Kanyika Project. Recent shifts in market dynamics present a valuable opportunity to enhance the project's commercial viability and long-term strategic importance. Adopting the ECI approach and taking the time now to reflect these market developments in the BFS are essential for improving project outcomes and mitigating project risks. We believe these strategic initiatives will facilitate the progression of discussions around short-term funding, while we finalise non-binding agreements and secure the remaining capital needed for full project development.”

Altshuler explains that the ECI approach embodied industry’s best practice for developing vertically integrated projects and positions the Company well for the upcoming phase of financing. He says the decision to extend the BFS timeline was guided by a combination of internal and external factors, including:

Project scope, construction methodology, and technical optimization.

Project scope, construction methodology, and technical optimisation In collaborating with leading contractors and engineering firms with proven success in delivering mining and processing projects across Africa, Globe says it is implementing an ECI approach which allows the firm to refine the project’s scope, layout, and construction strategy based on expert insights before finalising the BFS. He explains that their expertise ensures the design in the BFS is not only technically solid but also constructible, schedule-aligned, and suited to regional logistical, labour, and climatic realities.

“This collaborative approach also allows Globe to address potential bottlenecks and risk factors early, and the opportunities to reduce capital intensity and implementation timelines, resulting in a BFS which is ready for execution and financing.”

Economic and procurement optimisation

The Company is currently refining the BFS to enhance economic efficiency and maximize long-term project value. This process involves optimising plant design, infrastructure layout, and process engineering to reduce operational costs related to power consumption, reagent usage, and equipment selection. It continued explaining that in parallel, by engaging with key suppliers early to secure better pricing and improve supply chain visibility, the Company could enjoy competitive tendering and bulk purchasing advantages.

Market alignment

Globe says in light of recent global developments affecting the niobium and tantalum markets, the company it is reassessing its production scale, ramp-up strategy, and pricing assumptions in the BFS.

It states: “Geopolitical instability in key producing regions, such as the Democratic Republic of the Congo (DRC) and Rwanda, has increased demand for ethical, non-conflict and traceable sourcing particularly from Malawi.”

“Through discussions with potential off-takers, the Company is seeing accelerating demand from defense, aerospace, electronics, battery and superalloy sectors.”

“There is a growing global trend among buyers to diversify their sourcing of critical metals away from politically unstable regions and single-source supply chains.”

“The Company is committed to aligning the BFS with these market dynamics to ensure a commercially viable and sustainable project.”

Impact and Timing

As part of this process, Globe states that it has initiated non-binding discussions and negotiations with several mining, engineering, and construction firms. It says these discussions aim to:

• Refine the project scope and   construction methodology

• Optimise infrastructure sequencing and    production ramp-up

• Validate key operating assumptions

• Improve accuracy in capital and   operational cost estimates in   preparation for a formal EPC tender   process. The Company explained that the release of the BFS will be strategically timed to coincide with the finalisation of these commercial arrangements.

“While no binding agreements are in place at this stage, the Company will continue to keep the market informed in accordance with our continuous disclosure obligations.”

“Importantly, the adjustment in timing does not affect the Company’s target to commence substantial mining operations by September 2025. The Company’s engagement with these firms is part of a broader strategy focused on production planning, contractor integration, and detailed execution. The current BFS phase represents the ideal window for early EPC involvement and this approach underscores the Company’s ongoing commitment to project advancement to the Government of Malawi.”

As the Government is promoting the minerals sector with several large-scale mines expected to roll out in the short to medium term, stakeholders in the mineral sector have expressed concern over shortage of skilled personnel in the country to work in the mines.

Several companies are expected to open mines in Malawi including ASX-listed Lotus Resources which is expected to start extracting uranium at Kayelekera in Karonga this month; ASX-listed Sovereign Metals undertaking feasibility studies to mine rutile and graphite at Kasiya in Lilongwe, ASX-listed Globe Metals & Mining to mine niobium and tantalum at Kanyika in Mzimba, Canada-listed Mkango Resources working on front-end engineering studies for rare earth mining at Songwe Hill in Phalombe, and ASX-listed Lindian Resources working to commence rare earth mining at Kangankunde in Balaka.

The Ministry of Mining introduced a number of mining related disciplines in the country’s tertiary institutions under the phased-out World Bank and European Union financed Mining Governance and Growth Support Project.

But Consulting Geoscientist Ignatius Kamwanje told Mining and Trade Review that despite the universities offering mining related programs, there are not enough to supply the medium and large-scale mines expected to come on stream.

Kamwanje said: “There are some universities that are offering geology and other mining related courses and this is a good gesture for the country.”

“However, there is really a shortage of labour force in the industry because many graduates lack practical experience which is exacerbated by the laxity of the industry to recognize fresh graduates, lack of extensive recognition of the roles of these personnel in the industry, and inadequate tailor-made courses to provide mining solutions.”

“It is my anticipation that these medium to large scale mines will absorb the labour force possibly as management trainees, geology/ mining professionals and also skilled plus semi-skilled labour with experience in mine environments and on the job training.”

“I still foresee expatriates dominating high ranking positions but the government should spearhead localization of the labour force.”

He further explained the need for the government to do screening of expatriates to ensure that only positions that are crucial and challenging are occupied by expatriates leaving others to locals.

Commenting on the development, Coordinator for Chamber of Mines and Energy Grain Malunga said there are higher chances that expatriates will dominate the positions if the government does not address the needs of the industry.

Malunga said: “Expatriates will dominate the mining sector if we continue to educate our youth without addressing the needs of the mining industry.

“Expatriate jobs must be strictly monitored to have relevant local professionals understudying them.”

Through various platforms, stakeholders including Civil Society Organisations (CSOs) have been advocating for increased participation of locals in mineral sector projects including recruitment of locals in high ranking positions in mining firms.

Coordinator for Natural Resources Justice Network (NRJN) Kennedy Rashid emphasized the need to address the gap between academic training and practical experience as well as industrial demands of modern mining.

Rashid said: “I must point out that Malawi is not yet fully prepared to supply a sufficient and adequately skilled labour force for the oncoming wave of medium and large-scale mining operations.”

“While it is true that universities such as the Malawi University of Science and Technology (MUST) and the University of Malawi (UNIMA) offer mining-related programs, there remains a significant gap between academic training and the practical, industrial demands of modern mining.”

“Most graduates lack hands-on experience, exposure to advanced mining technologies, and specialized training in areas such as mineral processing, mine engineering, environmental management, and resource economics.”

Rashid said the gap creates a skills mismatch that forces the companies to fill key technical and managerial roles with expatriates.

He also said the dominance of expatriates in high-ranking positions in mining operations in countries like Malawi is often justified on the basis of “limited local capacity,” a claim that persists due to insufficient investment in targeted technical training and weak industry-academia linkages.

“To address this, Malawi must urgently, strengthen technical and vocational training programs tailored for the mining sector.”

“Malawi should also forge partnerships between industry and academia to ensure curricula meet market demands as well as implement policy incentives that require companies to gradually replace expatriates with trained Malawians.”

Rashid also spelt out the need for the establishment of a Mining Skills Development Fund to finance training of youths in mine-related professions to ensure that the country does not risk repeating past patterns where resource wealth fails to translate into meaningful employment for locals.

In many mining projects in Malawi, locals dominate non-skilled jobs with some recruited as interns while expatriates are employed as skilled personnel. The Malawi Government has, meanwhile, indicated that it is planning to establish a University that will concentrate on offering mining related courses.

Minister for Higher Education Jessie Kabwila said the institution will assist the country meet the employment needs of the sector as Malawi is developing mining as one of the key sectors in Malawi 2063 and Agriculture, Tourism, Mining and Manufacturing strategy which is being championed by State President Lazarus Chakwera.

Malawi Government’s prolonged ban on exportation of unprocessed gemstones continues to haunt Artisanal Small-scale Miners (ASMs) and dealers operating across the country.

In February this year the Ministry of Mining issued what was called a temporary ban on all exports of precious minerals to conduct a review of its mineral valuation framework, aiming to curb undervaluation and improve revenue collection.

The ban. which has now lasted about six months, has heavily affected ASMs and dealers.

In an interview with Mining and Trade Review, Maleta Gems and Jewelry said the prolonged ban has resulted in termination of contracts with international buyers who are now regarding Malawi as an unreliable gemstone source.  

MD for the firm, Percy Maleta said inaction and lack of communication by the Ministry of Mining continues to erode the trust that the firms in the sector earned and maintained with international buyers for years.  

Maleta said: “To date, no one seems to take ownership of the ban, neither the Principal Secretary, the Director General of the Minerals and Mining Regulatory Authority (MMRA) nor the Minister himself.

“Efforts by stakeholders to seek an audience or clarity have been met with silence, and this lack of transparency is deeply concerning and disheartening, making the entire gemstone family feel completely abandoned in the dark.”

The Malawi Government established a structured market for both gold and gemstones and empowered Export Development Fund (EDF) as corporate buyer under the Reserve Bank of Malawi (RBM). But Maleta said even though the move is commendable its execution has fallen short particularly for the gemstone subsector.

He said: “EDF currently does not have the financial muscle or operational model to absorb the full supply of precious and semi-precious stones being mined.”

“It behaves more like a commercial buyer than a strategic buyer, showing reluctance to purchase unless immediate resale is guaranteed and this short-term view does not align with the realities of the gemstone market.”

“EDF has also failed to diversify its buying. The market is not just about ruby and sapphire. most of which come from private mines or currently not being produced.”

“We have a wide range of coloured and ornamental stones that could drive value if properly marketed and supported by government structures.”

He said the export ban coupled with the failure of EDF to meet its mandate have left miners with limited options, a situation which has inevitably fueled illegal vending, as people seek alternative survival mechanisms.

Maleta, therefore, called for a transparent update on the status of the ban and meaningful engagement with industry players to chart a practical and inclusive path forward.

Concurring with Maleta, Co-Founder for Zozodo Gemstone Consultancy (ZGC) Emmanuel Phiri blamed EDF for being selective in buying the gemstones saying their mindset only dwells on making the entity realise more revenue not serving the nation.

  Phiri said: “Business has been greatly affected in a negative way. No investor is willing to invest, no capital forex to be generated through exports, this will result in shutdown of business due to lack of sales.”

Mining Expert and MD for Chiwandama GeoConsultants John Nkhoma while blaming the prolonged ban  said the sector is encountering challenges including secrecy and lack of production figures.

Nkhoma said: “Main problem is lack of audit.  The sector is very secretive. No one is revealing what they are doing and producing.”

“The government does not have the figures on the production of the sector.I remember sometime back government wanted to support the sector but faced problems because there were no figures relating to production and sales in the sector.”

Responding to the concerns, Acting Director in the Ministry of Mining, Mphatso Chikoti disclosed that there are in the process of finalizing a framework that will seal loopholes for smuggling gemstones.

Chikoti said: “We are working on a framework that will ensure that there are no leakages.”

“The framework has been finalized and we are now working with the Ministry of Justice, and what is remaining is a stakeholder meeting to have their input to map the way forward on how we can curb the smuggling of the gemstones.”

ASX-listed Sovereign Metals says it is making major progress towards completing its Definitive Feasibility Study (DFS) for the Kasiya Rutile-Graphite Project in Lilongwe, following the successful completion of extensive geotechnical investigations across critical infrastructure locations.

Sovereign MD and CEO Frank Eagar explains in a press statement that more than 400 individual tests have been conducted at the Kasiya site, targeting all major components of the project including the planned mining operations, processing plant, tailings storage facility (TSF), and the raw water dam. The work was carried out by ARQ Geotech (Pty) Ltd under the oversight of the Sovereign-Rio Tinto Technical Committee.

He describes the completion of the geotechnical fieldwork as a “significant milestone” in the company’s push toward de-risking the project.

“Completing these comprehensive infield geotechnical programs marks another significant milestone towards the completion of our DFS and another step in our systematic approach towards the development of Kasiya,” says Eagar.

He says that the investigations involved a wide range of surface and deep testing methods, including rotary core drilling, cone penetration tests with pore pressure measurements, dynamic probing, seismic surveys, auger drilling, test pitting, and trenching.

“These techniques were used to assess soil and rock characteristics beneath proposed infrastructure zones such as roads, processing areas, accommodation camps, power stations, and water storage sites. Samples collected during the program are also undergoing laboratory analysis to verify strength and composition”, says Eager. 

He points out that the preliminary findings from the investigation indicate favourable subsurface conditions that align with the regional geological expectations.

Eagar says, “the stratigraphy encountered across most infrastructure areas was generally consistent and comprised layers of topsoil, aeolian and colluvial transported materials, and reworked residual gneiss, transitioning into deeply weathered rock and then into hard bedrock derived from gneissic formations”

The consistency in geological profile will allow for more standardised foundation designs and construction approaches across the project site.

“This level of uniformity enables us to reduce engineering complexity and potentially lower construction costs,” he says.

He also adds that significantly ferricrete; an iron-rich, cemented soil layer found within the transported horizon has been assessed as potentially suitable for reuse as engineered fill. If confirmed through further testing, this could reduce the need for imported materials during construction and enhance cost-efficiency.

The data collected will be instrumental in finalising foundation and earthworks designs for infrastructure, improving slope stability planning, and evaluating the suitability of materials for construction.

 “This data will inform the design of foundations, slope stability, and material suitability ultimately contributing to safe, efficient, and cost-effective development,” says Eagar.

Eagar further explains that the geotechnical program represents one of the final critical technical components of the DFS, which is expected to guide investor and financing decisions. The findings are already being integrated into detailed engineering design work to optimise infrastructure placement and construction strategies.

Eagar remains confident in the project’s direction and said the work done so far reflects strong execution across all DFS workstreams.

“It reinforces our confidence in the viability of Kasiya as a world-class source of natural rutile and graphite,” he says.

As the DFS nears completion, Eager says Sovereign continues to follow a disciplined and technical approach to advance what it considers a genuine Tier-1 critical minerals project by making sure that each layer of progress brings Sovereign closer to establishing Malawi as a key player in the global supply chain for critical minerals

. Kasiya is the largest undeveloped natural rutile deposit in the world and also hosts significant quantities of flake graphite. Both minerals are classified as critical raw materials due to their use in technologies such as pigments, titanium metal, and lithium-ion batteries. 

ASX-listed Sovereign Metals has announced that at a time of unprecedented disruption in global graphite markets, with new U.S. tariffs fundamentally altering supply chain dynamics, the latest testwork on its graphite from the Company's Kasiya Rutile-Graphite Project in Lilongwe has delivered highly successful results.

The testwork focused on optimising the coating process for conversion of Kasiya derived spherical purified graphite (SPG) to coated spherical purified graphite (CSPG) while maintaining premium performance. The results will assist with ongoing offtake discussions with anode manufacturers.

Sovereign is developing Kasiya to potentially become the world's largest and lowest-cost natural graphite producer outside of China. MD and CEO Frank Eagar says: “Kasiya remains a primary rutile project, but our ability to also produce exceptional CSPG with world-class performance characteristics from our natural graphite concentrate is a further demonstration of the geopolitically strategic nature of Kasiya.”

“These new U.S. tariffs on Chinese graphite highlight the urgent need for reliable, high-quality alternatives. Kasiya's resource scale, long life, potentially lowest-cost non-Chinese producer, combined with our demonstrated technical excellence, positions us perfectly to serve battery manufacturers seeking secure supply chain diversification.”

Strategic Market Opportunity

The global graphite supply chain is experiencing fundamental realignment following the U.S. Commerce Department's 17 July 2025 announcement of 93.5% preliminary anti-dumping duties on Chinese graphite imports. Combined with existing tariffs, this creates an effective 160% barrier on Chinese graphite, fundamentally altering the economics for battery manufacturers seeking secure, cost-competitive supply chains. China currently controls approximately 75% of global graphite production and 97% of anode material processing, creating critical supply chain vulnerabilities that major battery manufacturers are now actively addressing.

Tesla, Inc. (Tesla) and Panasonic were among companies that opposed the new US tariffs, with Tesla’s submission to the U.S. Government stating that U.S. graphite producers have yet to demonstrate the “technical ability to produce commercial quantities” of graphite at the quality and purity required by Tesla and other battery cell manufacturers.

Eagar explains that once developed, Kasiya has the potential to become the world's largest and lowest-cost natural flake graphite producer, offering battery manufacturers a strategic alternative to Chinese supply chains for anode material feedstock.

“The latest successful coating testwork is a further demonstration of Kasiya’s increasing strategic importance,” he says.

Latest Testwork Validates Kasiya Graphite’s World-Class Quality to Anode Manufacturers

Optimisation testwork conducted by Prographite GmbH (Prographite) has once again demonstrated the exceptional characteristics of Kasiya graphite for CSPG production. The optimisation process successfully achieved target coating specifications and optimised inputs into the coating process while maintaining the premium performance metrics that position Kasiya graphite among the highest-quality sources globally.

Pitch coating is a standard refinement process where carbon-rich pitch material is applied to spherical graphite particles to create protective layers that enhance battery performance and longevity, turning SPG into CSPG. The latest testwork systematically evaluated pitch content to achieve optimal performance parameters.

 Key achievements from the process include:

• Process Efficiency Demonstrated:   Coating requirements optimised while   maintaining superior CSPG   characteristics.

• Premium Performance Maintained:   All target specifications achieved for   discharge capacity (>360mAh/g) and   first cycle efficiency (>94%).

• Physical Properties Achieved: Specific surface area (1.0 g/cm³) specifications met. Eagar explains that the data confirms that Kasiya graphite consistently delivers discharge capacity well above the critical 360mAh/g threshold while achieving first cycle efficiency above 94% - both key specifications for premium-quality natural graphite anode materials.

Customer Engagement Advances with Market Dynamics Creating Strategic Advantage

Eagar reports that initial samples of Kasiya fine flake graphite concentrate have been distributed to leading natural graphite anode producers and anode project developers.

He says these strategic engagements will support the development of offtake agreements while validating market demand for Kasiya's high quality battery-grade graphite.

“The Company continues advancing additional pilot-scale graphite concentrate processing to supply further concentrate material, with planning underway for a larger-scale concentrate processing run. These programs will support expanded customer qualification programs as development advances.” Eagar says.