Kanyika Niobium Project
Overview
The Kanyika Niobium Project in Malawi is set to produce high-purity niobium pentoxide and tantalum pentoxide powders.
It is also a fully permitted, long-life critical-minerals development producing niobium and tantalum for global advanced-materials markets.
The deposit lies within the Mozambique Orogenic Belt, hosting four well-defined pyrochlore-bearing zones over 3.5 km. The JORC (2012) Resource totals 68.3 Mt @ 0.283% Nb₂O₅ and 0.0135% Ta₂O₅, including a 22.8 Mt high-grade core at 0.422% Nb₂O₅.
Mining will be open-pit, using contractors and progressive sequencing of four pits, with 1.5 Mtpa ore feed and a 23-year mine life at a low 1.5 : 1 strip ratio.
A proven crush-grind–magnetic–flotation–gravity circuit achieves >75% Nb and 70% Ta recovery into a 30–35% Nb₂O₅ concentrate.
CapEx: US$250M (mine, concentrator, refinery); OPEX: ~US$52M p.a.; NPV₈: ~US$1.0B; IRR: ~50%; payback: <2 years.
Life-of-mine revenue totals US$5.6B and EBITDA US$3.7B, assuming US$55/kg Nb₂O₅ and US$410/kg Ta₂O₅.
Royalties are 5% government and 0.45% community, under a stable Mining Development Agreement.
Waste and water systems meet ANCOLD/ICOLD standards, with zero-discharge hydrology and full water recycling.
Infrastructure includes grid power, a 29 km access road, laboratories, workshops, and accommodation for 400 staff.
Environmental approval and updated ESIA align with IFC standards, while the Community Development Agreement funds local education, water, and health programs via the Kanyika Development Trust.
The Kanyika Niobium Project
A world-class source of high-purity niobium and tantalum oxides in Malawi.
Mining Licence Overview
The Kanyika Niobium Project is held under Large-Scale Mining Licence No. LML0216/21, granted by the Government of Malawi under the Mines and Minerals Act (2019). The licence was issued on 12 August 2021 and remains valid for 25 years, expiring in August 2046, with the option for renewal for successive 15-year terms subject to operational and regulatory compliance.
The licence area covers approximately 3.8 km² in the Milenje region of Mzimba District, northern Malawi, and grants exclusive rights to mine, process, and export the following mineral commodities:
• Niobium (Nb)
• Tantalum (Ta)
• Uranium (U)
• Zirconium (Zr)
• Hafnium (Hf)
• Praseodymium (Pr)
• Neodymium (Nd)
These minerals occur together within the pyrochlore–columbite–zircon–rare-earth mineralisation system at Kanyika, hosted in alkali granitoid and syenitic rock units. The licence provides Globe Metals & Mining with complete control over exploration, extraction, beneficiation, and export of all mineral products derived from this system.
Under the licence terms:
The Government of Malawi holds a 10% free-carried interest, consistent with national mining policy.
The project operates under a Mining Development Agreement (MDA) signed in March 2023, ensuring fiscal stability, import duty and VAT exemptions, and profit repatriation rights.
A Community Development Agreement (CDA) commits 0.45% of annual turnover to local development through the Kanyika Development Trust.
The operation is regulated through an approved Environmental and Social Impact Assessment (ESIA) and ongoing Environmental and Social Management Plan (ESMP).
The Kanyika licence is in good standing with all statutory fees and obligations up to date. It represents one of Malawi’s most strategically important mining titles, underpinning the development of Africa’s first integrated niobium–tantalum–rare earth supply hub.
Geology and Resource Overview
Geology:
The Kanyika Niobium Project lies within the Mozambique Orogenic Belt of northern Malawi, underlain by ancient gneissic and granitic formations. The deposit is hosted within a north-northeast striking, west-dipping alkali granitoid intrusion extending over 3.5 km of strike, averaging 200 m wide in the south and narrowing northwards.
Mineralisation is an intrusion-hosted Nb–Ta–U–Zr system, dominated by pyrochlore with minor columbite, zircon, and rare-earth elements. Four well-defined mineralised zones occur in two parallel sheets (footwall and hanging-wall), with higher-grade shoots in gently dipping, en-echelon structures.
Exploration began after UNDP’s 1980s airborne radiometric surveys and was advanced by Globe Metals & Mining from 2006 onward. In total, over 30,000 metres of drilling (diamond and reverse circulation) have been completed across the deposit, supported by detailed trenching, mapping, and sampling programs. More than 23,000 individual samples were analysed by ACME Analytical (Vancouver) and Intertek Genalysis (Perth and Johannesburg) under rigorous QA/QC protocols including certified standards, blanks, and duplicates.
The host granitoid is subdivided into saprock, transition, and fresh rock zones, with mineralisation continuous at depth and suitable for open-pit mining.
Resource classification under JORC (2012) is based on drill spacing between 25 m and 100 m, using both RC and diamond core data. Statistical validation confirms robust grade continuity and confidence in the 68.3 Mt @ 0.283% Nb₂O₅, 0.0135% Ta₂O₅ global resource (including 22.8 Mt of high-grade material at 0.422% Nb₂O₅).
JORC 2012 Mineral Resource Statement
The Mineral Resource Estimate (MRE) was prepared by Quantitative Group (QG) in 2012 and revalidated in 2018 by BMGS Pty Ltd under JORC (2012) compliance. The estimate uses Ordinary Kriging (OK) in Datamine software, incorporating 11,300 m of reverse circulation and diamond drilling.
Category
Tonnes (Mt)
Nb₂O₅ (ppm)
Ta₂O₅ (ppm)
Measured
5.3
3,790
180
Indicated
47.0
2,860
135
Inferred
16.0
2,430
120
Total (1,500 ppm cut-off)
68.3
2,830
135
Category (3,000 ppm cut-off)
Tonnes (Mt)
Nb₂O₅ (ppm)
Ta₂O₅ (ppm)
Measured
3.4
4,790
220
Indicated
16.6
4,120
190
Inferred
2.8
4,110
190
Total (3,000 ppm cut-off)
22.8
4,220
190
Cut-off grade: 1,500 ppm Nb₂O₅ and 3,000 ppm sensitivity case
Density values: 2.1 t/m³ (oxide), 2.65 t/m³ (transition), 2.75 t/m³ (fresh)
Block model: 10 m (E) × 25 m (N) × 10 m (RL)
Feasibility Study
The grant of a 25-year mining licence for Kanyika, coupled with a positive updated Feasibility Study, underscores a high-value, de-risked opportunity. This dual achievement confirms the project’s robust economics and long-term viability.
The study highlights are as follows:
Capital Expenditure (CapEx)
- Pre-production CapEx: US$250M — US$200M mine & concentrator (incl. community relocation) + US$50M refinery; study basis includes 10% EPCM and 10% contingency, and ~US$10M owner’s project team costs.
- Class of estimate: predominantly AACE Class-3 (FEL3) with some Class-4 elements; next step is FEED to upgrade to AACE Class-2 before final investment.
- Sustaining & closure: US$100M sustaining (mine, infra, TSF, refinery maintenance) across LoM; US$5M environmental bond and US$25M rehabilitation (timed to late-LoM).
- Working capital: US$30M to cover <90-day payment terms at start-up.
Operating Expenditure (OPEX)
- Site COGS (Mining FS table): US$52.5M p.a. average; LoM US$1,212M. Mix: Concentrator 42%, Mining 25%, Logistics 18%, Admin 10%, Environmental 5%.
- Consolidated operating envelope (key summary): Mine US$50M p.a., Refinery US$20M p.a., Sales & Marketing US$13M p.a., Corporate US$5M p.a. (total ≈ US$88M p.a.).
Production & Product
- Mine life: ~23 years; 1.5 Mtpa steady-state mill feed; average strip ratio 1.54:1 (W:O). High-grade is front-loaded to accelerate cash flow.
- Concentrate output: ~260,000 t over LoM (avg ~11,300 tpa), grading >30% Nb₂O₅ and ~1% Ta₂O₅.
- Contained metal (LoM): ~73,250 t Nb₂O₅ and ~3,240 t Ta₂O₅; refinery product basis 3,250 tpa Nb₂O₅ and 140 tpa Ta₂O₅.
- Recoveries: ~75% Nb and ~73% Ta from the flowsheet (magnetic + flotation + gravity).
Revenue & Pricing
- Price deck (base case): US$55/kg Nb₂O₅, US$410/kg Ta₂O₅ (tantalum mostly as K-salts).
- Revenue split: Niobium ~85% of revenue; Tantalum ~15%.
- LoM revenue: ~US$5.6B (includes other products ~US$271m; commissioning product allocated to production years).
Financial Returns & Cash Flow
- Headline economics: NPV₈ ≈ US$1.0B (pre-tax); IRR ≈ 50% (pre-tax); payback ~1.5 years from first production.
- EBITDA (LoM): ~US$3.74B (per key commercial summary).
- Cash-flow shape: life-of-operations EBITDA curve shows strong early cash build from high-grade feed and stabilises at steady-state throughput.
- Power & reagents: major OPEX drivers; strategic grid connection and potential regenerative power reduce diesel and power-cost exposure over time.
Sensitivities & Assumptions
- Key sensitivities: most sensitive to sales prices and operating costs; relatively insensitive to CapEx—profitability preserved under reasonable adverse CapEx moves.
- Discount-rate envelope: NPV assessed 8%–16% (real, zero inflation in model); both pre-tax and after-tax cases are considered on a 100% project basis.
- Marketing note: pricing based on external sources (e.g., Asian Metal, Argus, Platts, CRU); niobium seen as stable with upside, tantalum sustainable but more volatile.
Royalties, Taxes & Funding
- Royalties: Government of Malawi 5% (minerals) + 0.45% community royalty (CDA).
- Taxation & stability: standard tax regime per Malawi legislation; import duty/VAT relief & tax stability provisions via Development Agreement framework.
- Total funding need: approximately US$350M over project life (incl. working capital); availability, timing and terms are key execution risks called out in the study.
Summary of Project Flowsheet
Mining
The Kanyika Niobium Project will be mined using conventional open-pit methods with drill-and-blast operations and contractor mining services to optimise capital efficiency. Four main ore zones — Milenje, Uzambazi, Entandweni, and Pangano — will be progressively developed over the 23-year life of mine, beginning at Milenje to exploit high-grade niobium-tantalum ore in the early years.
Ore mining is designed at 1.5 Mtpa, with an average strip ratio of 1.5 : 1, balancing ore exposure and waste removal. The mine design employs Whittle and Datamine pit optimisation models, integrating geotechnical, hydrogeological, and economic constraints to achieve stable pit walls and uniform ore delivery to the concentrator.
Mine scheduling emphasises selective mining and grade control using blast-hole sampling and close-spaced RC infill to minimise dilution and ore loss. Waste rock from early phases will be used in construction of haul roads, TSF starter walls, and drainage bunds, minimising external waste storage.
Continuous operational improvements — including dust suppression, progressive rehabilitation, and digital fleet management — ensure compliance with Malawi’s Mining and Minerals Regulations and IFC/Equator Principles.
The mine plan supports a steady production feed of ~3,250 tpa Nb₂O₅ equivalent, enabling long-term, low-cost supply of critical niobium and tantalum concentrates to the global market.
Metallurgical Processing
The Kanyika concentrator flowsheet has been developed through 15 years of testwork and pilot-plant trials across Australia, China, and South Africa, resulting in a proven, scalable process with high recoveries and low reagent consumption.
The process begins with primary crushing and screening, followed by EDS horizontal impact milling — a low-energy alternative to SAG milling validated during the 2023 bulk-sample campaign. Material then undergoes magnetic separation, removing iron-bearing minerals before desliming and flotation, where niobium-tantalum minerals are upgraded into a clean concentrate grading 30 – 35% Nb₂O₅.
Laboratory and pilot testing performed by the Guangzhou Research Institute of Non-Ferrous Metals (GZRINM) and Multotec SA confirmed niobium recoveries exceeding 75%, tantalum recoveries above 70%, and minimal uranium carry-over. Gravity and multi-gravity circuits further enhance pyrochlore recovery from fine fractions.
The simplified single-stage flotation circuit, introduced during 2022–2023 optimisation, reduces capital costs by 20% and power consumption by 15%, while maintaining metallurgical performance.
All testwork results are consistent with the Feasibility Study design throughput of 1.5 Mtpa, producing approximately 11,000 t of concentrate per year. The flowsheet integrates closed-loop water recycling and reagent recovery systems, achieving zero liquid discharge and best-practice environmental performance.
This robust and energy-efficient design ensures Kanyika will operate as one of the world’s lowest-cost niobium oxide producers outside Brazil, offering long-term supply security to key global industries.
Waste Management & Tailings Storage Facility
The Kanyika Project’s integrated waste and tailings management system has been designed to world-class standards for safety, stability, and environmental protection. Located on the northern bank of the Milenje River, the Tailings Storage Facility (TSF) covers approximately 170 hectares and will accommodate over 36 million m³ of process residue across two phases of operation.
The TSF design follows ANCOLD (2019) and ICOLD (2016) dam-safety guidelines, ensuring permanent containment of tailings, waste rock, and process residues. The modified centre-line embankment uses compacted mine waste rock and local laterite; it is lined with a clay core and under-drainage system to prevent seepage. The design also includes decant towers, seepage collection trenches, and storm-water diversions to maintain the project’s zero-discharge status.
Phase 1 construction will reuse all initial waste rock mined, eliminating the need for external dumps. In Phase 2, expanded capacity will safely manage increased tailings from full-scale operations.
Solid waste handling, including hazardous, municipal, and process by-products, follows the Malawi Bureau of Standards MS 539/719/730 Codes of Practice, combined with ISO 14001 environmental management principles.
All surface water will be captured and recycled to the plant, while groundwater and air-quality monitoring ensure compliance with IFC/World Bank safeguards. Progressive rehabilitation, topsoil preservation, and native vegetation cover form part of the closure strategy, guaranteeing long-term landscape stability and minimal post-mining liability.
Kanyika Niobium Project – Process Plant (Concentrator)
The Kanyika concentrator is a 1.5 Mtpa facility developed through more than a decade of testwork and pilot programs across Australia, China, and South Africa. The circuit combines low-energy crushing, gravity, magnetic, and flotation processes to produce a clean pyrochlore-tantalum concentrate grading 30–35% Nb₂O₅ and ~1% Ta₂O₅.
Ore is crushed in an EDS multi-shaft horizontal impactor, a proven alternative to conventional SAG milling, before screening and desliming. Magnetic separation removes iron-bearing gangue prior to flotation, which upgrades niobium and tantalum minerals with minimal reagent consumption. Locked-cycle and variability testwork by GZRINM (Guangzhou Research Institute of Non-Ferrous Metals) and Multotec SA achieved recoveries above 75% Nb and 70% Ta.
A simplified single-stage flotation circuit—introduced in 2022–2023—cuts power use by ≈ 15% and capital cost by ≈ 20% while maintaining metallurgical performance. The design achieves closed-loop water recycling, zero liquid discharge, and automated thickener control, enabling Kanyika to operate as one of the lowest-cost niobium-oxide producers outside Brazil.
Kanyika Niobium Project
– Refinery
The refinery upgrades pyrochlore concentrate into high-purity oxides suitable for premium markets.
- Pre-leach: Sulphuric acid removes phosphorus and calcium impurities.
- Digestion: HF leach dissolves niobium and tantalum into solution.
- Filtration & Cooling: Produces clear pregnant solution for downstream recovery.
- Solvent Extraction: SX separates niobium and tantalum streams using 2-octanol extractant.
- Precipitation: Ammonia neutralisation recovers Nb and Ta hydroxides.
- Calcination: At 700–900 °C, hydroxides convert to Nb₂O₅ and Ta₂O₅ powders (>99% purity)
- Optional Products: Can also produce tantalum salts (K₂TaF₇) or high-purity ferroniobium for specific customer demand.
- By-product Management: Neutralisation of raffinate with lime; co-disposal of residues with tailings. Ammonia recovery reduces reagent cost and emissions.
- Value Addition: Tantalum recovery adds ~15% additional revenue, almost covering operating costs of the mining/concentrator stage.
Kanyika Niobium Project – Infrastructure & Services
The Kanyika Project infrastructure has been master-planned to international standards for safety, logistics, and sustainability. All design work was undertaken by GMMA and Australian, South African and Malawian engineering partners, incorporating Equator Principles Category A compliance.
The project will be fully owned by Globe Metals & Mining Africa (GMMA) — 90% held by the Australian parent and 10% by the Government of Malawi. The site layout integrates process facilities, mining operations, accommodation villages, utilities, and logistics under a secure, fenced boundary with 24-hour access control.
A new 29 km upgraded road from Chatoloma along the M1 Highway will provide year-round access to the site, linking to key regional corridors to Dar es Salaam (Tanzania) and Nacala (Mozambique). The design includes a weighbridge, security gatehouse, vehicle inspection area, and logistics yard for inbound reagents and outbound concentrate containers.
Power will be supplied through grid connection via the national utility ESCOM, with backup generators ensuring reliability. Water will be sourced from the Champhira Gravity Main and local catchments, while wastewater will be treated through an on-site facility and recycled to the process circuit.
Support infrastructure includes laboratories, workshops, fuel and reagent storage, and accommodation for up to 400 personnel during operations. The layout reflects best-practice environmental design, minimising footprint and ensuring efficient material and personnel movement throughout the site.
Environmental and Social Stewardship
The Kanyika Niobium Project has been designed around international best-practice standards in environmental protection and community engagement. Environmental approval for the project (Certificate 43A.4.5) was first issued by Malawi’s Environmental Affairs Department and remains valid under the Malawi Environmental Protection Authority (MEPA). GMMA will submit an updated Environmental and Social Impact Assessment (ESIA) before operations commence, reflecting new baseline data, current legislation, and modern ESG expectations.
All key permits — including water-use licences, pollution-control dam authorisations, and groundwater abstraction rights — are being secured through the National Water Resources Authority. Phase 1 construction will operate under an approved Environmental and Social Management and Monitoring Plan (ESMMP) to ensure compliance with national and IFC standards.
The 2013 EIA and forthcoming ESIA cover specialist studies across air quality, water resources, biodiversity, soils, heritage, noise, climate change, and radiation safety. GMMA has committed to continuous environmental monitoring, dust suppression, and radiation management, including radon-gas testing and water-quality assessments.
Community and stakeholder engagement form a cornerstone of the project’s development. A formal Stakeholder Engagement Plan and Grievance Mechanism ensure local voices are heard, while a Resettlement Policy Framework and phased Resettlement Action Plans (RAPs) will guide fair, transparent relocation of affected households.
GMMA has also signed a Community Development Agreement establishing the Kanyika Development Trust, which directs funds to education, clean water, health, and food-security initiatives. Closure planning and progressive rehabilitation are integrated from the outset, ensuring long-term environmental stability and social sustainability beyond mining life.
Globe Metals & Mining – Mining Development Agreement (MDA) Summary
The Mining Development Agreement (MDA) between Globe Metals & Mining Limited (via Globe Metals & Mining (Africa) Limited) and the Government of Malawi was signed in March 2023 and formally received by Globe in April 2023. It provides the legal and fiscal foundation for developing the Kanyika Niobium Project.
Key Terms
Tenure & Stability:
25-year stability period, renewable, ensuring tax and legal certainty for the project.Fiscal Regime:
5% royalty on gross revenue; 30% corporate tax; exemptions on approved capital imports; eligibility for Export Processing Zone (EPZ) incentives on refined products.Local Content:
Prioritises Malawian employment and procurement, with required training and skills transfer programs.Community Development:
Obligates Globe to conclude a Community Development Agreement (CDA) and fund local social and infrastructure projects, including resettlement and compensation.Environmental & Social Compliance:
Adherence to Malawi’s Environmental Management Act and continuous environmental monitoring through MEPA.Infrastructure:
Government support for road, power, and water access; Globe authorised to build or operate its own utilities.Dispute Resolution:
International arbitration under UNCITRAL rules, seated in London.
Strategic Significance
The MDA secures a predictable investment environment and underpins the transition of Kanyika toward Final Investment Decision (FID) and project financing, establishing Malawi’s first large-scale niobium-tantalum operation.
Funding
The Industrial Development Corporation of South Africa (IDC) has issued a term sheet for a secured, US$10M convertible loan to be drawn in four milestone-linked tranches, funding completion of the Bankable Feasibility Study, advancement of FEED, and early works such as resettlement, site preparation, and permitting. The facility carries a five-year tenor priced at SOFR + 7% for USD drawings or South African Prime + 3.5% for any ZAR portion, and includes conversion rights of up to 25% of the Malawi project holding company or 19.9% of Globe Metals & Mining. Ecobank Malawi has provided a non-binding LOI for a US$15M, five-year facility with a 24-month moratorium on both principal and interest to support Phase 1 CapEx and initial working capital, subject to due diligence, credit approvals, and required government clearances.
Together, IDC and Ecobank represent US$25M of facilities, equating to roughly 54% of the ~US$46M Phase 1 funding requirement and delivering a powerful blend of DFI validation and local banking support. This structure enhances financing confidence with commercial lenders, ECAs, and offtake partners, offers FX flexibility, and preserves the option for IDC to convert into strategic equity. Next steps are to convert these commitments into binding facilities, align offtakes with financing (including potential prepayment features) with Affilips, Neo, and Myst, and close the balance of funding to reach a Final Investment Decision
Competent Person Statement
The information on this website that relates to Mineral Resources is extracted from the report titled “Kanyika Niobium Project – Updated JORC Resource Estimate” released to the Australian Securities Exchange (ASX) on 11 July 2018 and available to view at www.globemm.com and for which Competent Persons’ consents were obtained. Each Competent Person’s consent remains in place for subsequent releases by the Company of the same information in the same form and context, until the consent is withdrawn or replaced by a subsequent report and accompanying consent.
The Company confirms that is not aware of any new information or data that materially affects the information included in the original ASX announcement released on 11 July 2018 and, in the case of estimates of Mineral Resources, that all material assumptions and technical parameters underpinning the estimates in the original ASX announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Persons’ findings are presented have not been materially modified from the original ASX announcement.
Full details are contained in the ASX announcement released on 11 July 2018 titled “Kanyika Niobium Project – Updated JORC Resource Estimate” available to view at www.globemm.com
Kanyika Gallery
