GLOBE Metals & Mining has been given the green light to find about US$250 million for an integrated niobium project development in Malawi called Kanyika that’s been modelled to have a pre-tax net present value of about $1 billion and an internal rate of return of circa 50%
With a mining licence now received, “all approvals (are) in place to immediately commence construction upon funding and relocation of affected persons”.
However, Globe and the government of Malawi are currently defending in the High Court of Malawi an action by the local community who allege that mining has commenced and claim the defence has breached their constitutional rights by preventing rights to land and lifestyle and a claim for compensation, damages and resettlement.
“At this stage, in discussion with the community, the company has a high degree of confidence that the court proceedings will not continue and that a settlement with mutual benefit will be forthcoming,” Globe said.
“The issue of a mining licence primarily solves the community claim for action on development, relocation and resettlement.”
Globe has allocated US$200 million for plant, property and equipment as well as community relocation.
The open cut development will involve processing of 1.5 million tonnes per annum and production of 11,000tpa of concentrate that will be refined into 3250tpa of niobium and 140tpa of tantalum.
Over 90% of niobium is used in the manufacture of high strength alloy steels, with the intensity of usage in steel is rising as markets move towards the manufacture of higher quality steels.
Globe said “niobium’s unique characteristics make it central to many of the world’s past, present and future technologies … (and that it) is critical to military, aerospace, space and medical industries”.
It is also said to be “increasingly important in quantum electronics, in the manufacture of semiconductors and in the electrical vehicle industry”, with Globe set to “target high-end, high-value applications”.
Globe had cash at June 30 of A$2.8 million.
Shares in Globe were up 28.5% to 18c in morning trade, capitalising the company at $84 million.
The stock was at levels around 4c in June, with subsequent strong interest from investors shown after notification that month of the mining lease approval.
Globe initially started feasibility work on Kanyika in 2009
Original story from MiningNews.Net
