ASX- and Aim-listed Sovereign Metals has signed a memorandum of understanding (MoU) with global trading and interments company Mitsui & Co for the offtake of 30 000 t/y of natural rutile from Sovereign’s Kasiya project, in Malawi.
The MoU creates a marketing alliance between the two parties to jointly market Sovereign's rutile across Asia and other markets.
The alliance will allow Sovereign to leverage off Mitsui's extensive network and their market-leading understanding of the titanium industry and global logistics.
Mitsui has shared samples of rutile product from Kasiya with Asian end-users that have confirmed its premium chemical specifications should be suitable for use in their titanium sponge and pigment processes, as a precursor for high-grade, high-specification titanium metal and pigment production.
Sovereign MD Dr Julian Stephens remarks that the Asia region is a key natural rutile market with all major end-use sectors well established and further strong growth forecast.
“We expect expanding technology developments and increasing environmental awareness to drive greater demand for natural rutile. This marketing alliance with a very high-calibre partner in Mitsui will assist Sovereign to penetrate these ever-growing markets.”
The MoU may be extended beyond its current expiry of December 31, 2023, or can be escalated to a definitive agreement.