Name of the Project
Kasiya rutile project.
Location
Malawi.
Project Owner/s
Sovereign Metals.
Project Description
Kasiya is the biggest undeveloped rutile deposit in the world and one of the world’s biggest flake graphite deposits.
Sovereign’s expanded scoping study for Kasiya, released in June 2022 is based on the updated mineral resource estimate reported in April 2022, of 1.8-billion tonnes containing 18-million tonnes of rutile at 1.01% and 23.4-million tonnes of graphite at 1.32%.
The study envisages a 25-year mine life during which time rutile and graphite are produced during two stages.
Stage 1 (years 0 to 5) comprises 12-million tonnes of ore processed a year to produce about 145 000 t /y of natural rutile and 85 000 t/y of flake graphite.
Stage 2 (years five to 25) will add 12-million tonnes of capacity for a total of 24-million tonnes a year of ore processed to produce about 260 000 t/y of rutile and 170 000 t/y of flake graphite.
Net Present Value/Internal Rate of Return
The expanded scoping study shows an after-tax net present value, at an 8% discount rate, of $1.54-billion and an internal rate of return of 36%, with payback from the start of construction of 2.6 years.
Capital Expenditure
Stage 1 capital costs to first production are estimated at $372-million, while those for Stage 2 is estimated at $311-million, funded from project cash flows.
Planned Start/End Date
Not stated.
Latest Developments
Sovereign Metals has started offtake talks with titanium dioxide pigment producer The Chemours Company over a potential 20 000 t/y of natural rutile from the Kasiya project.
The company has signed a nonbinding memorandum of understanding (MoU) covering the Stage 1 operation at the project and an option to take additional product when Kasiya reaches Stage 2 nameplate capacity.
The MoU will expire two years from the execution date but can be extended by agreement by both parties should a definitive agreement not have been reached by that time.
Key Contracts, Suppliers and Consultants
DRA (lead study manager); Jem-Met (project management); Placer Consulting (mineral resource estimate); Oreology Mine Consulting (mine scheduling and pit optimisation); Fraser Alexander (mining methods and tailings management); Epoch Resources (tailing disposal); AML (metallurgy – rutile); SGS (metallurgy – graphite); Dhamana Consulting (environment and social studies); JCM Power (power); TZMI (marketing – rutile); Fastmarkets (marketing – graphite); Morgan Sterling Consultants (logistics); and Minviro (life-cycle assessments).
Contact Details for Project Information
Sovereign Metals, tel +61 8 9322 6322 or email info@sovereignmetals.com.au.