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ESG

Environment, Social and Governance (ESG)

At Globe Metals & Mining, ESG is central to how we operate and how we deliver long-term value.

The Kanyika Niobium Project is being advanced with a clear commitment to responsible mining, transparency, and partnership with all stakeholders — from host communities to government, investors, and end users.

Community Development

Globe has entered into a Community Development Agreement (CDA) that ensures local communities directly benefit from the project. The CDA provides a legally binding framework for investments in:

  • Local infrastructure (roads, schools, healthcare facilities, water access)

  • Skills training and employment opportunities

  • Enterprise development programs to support local businesses

  • Social programs in education, health, and community wellbeing


This agreement is a cornerstone of our approach so that the mining benefits flow directly to the people living closest to the project.

Mine Development Agreement (MDA)

The MDA provides a stable, transparent, and predictable fiscal and legal framework for the Kanyika Project. Negotiated with the Government of Malawi, the agreement covers:

  • Fiscal terms, including taxation, royalties, and foreign exchange management
  • Operational stability and clarity on permitting
  • Government commitments to infrastructure support and regulatory facilitation
  • Clear alignment between national development goals and Globe’s project objectives

The MDA ensures Globe can advance the project with confidence while guaranteeing that Malawi and its citizens receive a fair and enduring share of the value created.

Royalties and Fiscal Contributions

Globe is committed to fair, transparent royalty payments and fiscal contributions. Under the MDA and in line with Malawi’s mining legislation, the project will contribute:

  • Royalties on niobium and tantalum sales directly to government
  • Corporate taxes in accordance with Malawian law
  • Community payments under the CDA in addition to statutory royalties
  • Export revenue and foreign exchange inflows that strengthen Malawi’s balance of payments

This fiscal contribution underpins the project’s role in Malawi’s economic development.

Environment

Environmental stewardship is embedded in our development approach. Globe has completed comprehensive Environmental and Social Impact Assessments (ESIAs), including:

  • Baseline studies on water, air, biodiversity, and soils
  • Measures to minimise greenhouse gas emissions and energy use
  • Plans for responsible waste and tailings management
  • Ongoing monitoring and reporting in compliance with Malawian law and international best practice

We are committed to progressive rehabilitation, water stewardship, and alignment with global ESG reporting frameworks.

Governance

Globe is governed by an experienced Board and management team with a strong focus on transparency, accountability, and risk management. We are committed to:

  • Comply with ASX and SEC standards of corporate governance
  • Submit transparent reporting of financial, environmental, and social performance

  • Have zero tolerance for corruption, bribery, or unethical practices

  • Maintain open and consistent engagement with government, investors, and community stakeholders


Our ESG Commitment

Globe Metals & Mining is forging a lasting partnership with Malawi, founded on more than mineral wealth. Through binding commitments like the CDA and MDA, direct royalty contributions, and rigorous environmental stewardship, we are building a legacy of shared value that benefits communities, government, and investors alike.

Mining Development Agreement (MDA)

Background

  • Approved by the Malawi Government in March 2023, the first such agreement under the 2018 Mines & Minerals Act.
  • Confers legal and fiscal certainty, allowing Globe to lawfully progress development and financing.
  • Grants Globe the right to mine niobium, tantalum (and deleterious uranium) under Mining Licence LML0216/21.

Key Terms

  • Government Equity: 10% free-carried interest; option to acquire a further 10% post-construction (contributory).
  • Employment/Procurement: Preference for Malawian citizens and local businesses, subject to capability.
  • Royalties: 5% statutory royalty to Government; 0.45% community royalty (as per CDA).
  • Fiscal Stability: Import/VAT exemptions on capital goods; stable tax regime guaranteed for up to 10 years.
  • Expenditure Obligation: Minimum US$200M capital spend within 24 months of “decision to mine”.
  • Environmental Bond: US$1M lodged prior to construction.
  • Foreign Currency: Permission to hold offshore FX accounts for debt servicing for 7 years.
  • Resettlement: Globe responsible for relocation of affected persons, under approved framework.

Strategic Importance

  • Legally secures Globe’s tenure and development rights for 25 years.
  • Provides confidence to financiers and offtake partners.
  • Establishes a framework balancing investor returns with national and community benefits.

Community

Community Development Agreement (CDA)

Background

  • Signed with representatives of qualified communities surrounding the Kanyika Project in August 2024 .
  • Establishes Globe’s statutory commitment to spend 0.45% of turnover on advancing community interests.
  • Managed via the newly formed Kanyika Development Trust, which gives communities a direct say in how funds are allocated .

Key Terms

  • 0.45% of turnover directed to social, economic, and infrastructure projects.
  • Oversight through Kanyika Development Trust (community + company + government representation).
  • Priorities include: education, healthcare, local enterprise, infrastructure, and preservation of cultural heritage.
  • Demonstrates ESG compliance and inclusivity.

Strategic Importance

  • Secures Globe’s social licence to operate.
  • Provides transparency and accountability, reducing project execution risks.
  • Strengthens relationships with traditional authorities and government.

Environmental Studies

Globe is advancing the Kanyika Project with a firm foundation of regulatory compliance and social responsibility. We have successfully obtained the required Environmental and Social Impact Assessment (ESIA) certificates for the project’s key components: the 30-kilometre access road (from Chataloma along the M1 highway) and the main site operations. These vital studies were also updated in May 2020 to conform with the nation’s latest environmental and mining legislation, the Environmental Management Act (2016) and the new Mines and Minerals Act (2018), respectively. Our standards are fully aligned with national priorities. A copy of this report is available on the Company website.