Kasiya rutile/graphite project, Malawi – update
Photo by Sovereign Metals
Name of the Project
Kasiya rutile/graphite project.
Location
Central Malawi.
Project Owner/s
Sovereign Metals and Rio Tinto.
Rio Tinto made invested in Sovereign in July 2023, resulting in an initial 15% shareholding and options, and expiring within 12 months of initial investment, to increase its position to 19.99%. Under the Iivestment agreement, Rio Tinto will provide assistance and advice on technical and marketing aspects of Kasiya, including on Sovereign’s graphite co-product, with a primary focus on spherical purified graphite for the lithium-ion battery anode market.
Project Description
Kasiya is the biggest natural rutile deposit and second-largest flake graphite deposit in the world.
A prefeasibility study has confirmed the project as potentially a major critical minerals project, with an extremely low carbon dioxide footprint delivering significant volumes of natural rutile and graphite while generating significant economic returns.
The proposed large-scale operation will process 24-million tonnes of ore a year to produce an estimated 245 000 t of natural rutile and 288 000 t of natural graphite a year at steady state, for an initial mine life of 25 years.
The project is positioned to become the world’s biggest rutile producer at 222 000 t/y and one of the world’s biggest natural graphite producers outside of China at 244 000 t/y, for an estimated life-of-mine of 25 years.
Potential Job Creation
Not stated.
Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at an 8% discount rate, of $1.61-billion and an internal rate of return of 28%, with a payback of 4.3 years from the start of production.
Capital Expenditure
Capital costs to first production are estimated at $597-million. Expansion capital is estimated at $287-million.
Planed Start/End Date
Not stated.
Latest Developments
Sovereign Metals has announced that a bulk sampling programme to extract more than 100 t of ore is under way, to produce more than 1 000 kg of natural graphite for lithium-ion battery anode testwork and product qualification.
The programme is part of the company’s graphite bulk sample programme for qualification, downstream testwork and product development.
A major component to graphite sales agreements is customer qualification, with graphite produced from this programme to be shared with prospective end-users, in addition to being used for upscaled downstream testwork.
Previous testwork confirmed Kasiya’s graphite would have near-perfect crystallinity and a high purity – both key attributes for suitability in lithium-ion battery feedstock.
The upscaled graphite qualification programme will support upcoming project studies with the company’s strategic partner Rio Tinto.
Sovereign and Rio Tinto have agreed to collaborate to qualify graphite from Kasiya, with a particular focus on supplying the spherical purified graphite segment of the lithium-ion battery anode market.
Sovereign has indicated that this upscaled graphite programme comes as China implements curbs on exports of natural graphite under ‘national security’ concerns.
Key Contracts, Suppliers, and Consultants
None stated.
Contact Details for Project Information
Sovereign Metals, Tel +61 8 9322 6322, or email info@sovereignmetals.com.au.
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