Partner joins Globe at Kanyika

Kristie Batten
MiningNews.net

GLOBE Metals & Mining has entered into a formal joint venture agreement with a South African company over its Kanyika niobium project in Malawi.

Engineering firm Thuthuka Group will invest $US10.6 million ($A12.8 million) into the project, which will fund around 85% of the bankable feasibility study. The contribution will earn Thuthuka an immediate 25% interest in Globe’s wholly owned African subsidiary, which is the holder of the project. Thuthuka will fund the metallurgy and process design, mining, social and environment, infrastructure, procurement management, power plant study and design, as well as the transport and logistics study aspects of the BFS.

The work can be carried out by Thuthuka or a third party. Globe managing director Mark Sumich said Thuthuka’s involvement was a testament to the technical and financial merits of the project. “Both their technical expertise and capital will make a significant contribution to the ongoing success of the project, and keeps Globe on track to commence production in 2012,” he said.

Globe will fund the remaining 15% of the BFS, which includes the geological work and marketing and off-takes. The BFS is set to begin immediately, with completion scheduled for 2010. Thuthuka is to complete its components no later than April 2011. Globe is currently completing a prefeasibility study, due for completion in the fourth quarter of this year, but preliminary cost estimates indicate capital costs of $152 million.

The company is eyeing a 20-year operation to start in 2012, producing 3000 tonnes per annum of niobium metal, principally in the form of ferro-niobium. Kanyika has resources of 55.3 million tonnes grading 3000 parts per million niobium. Shares in Globe remain at A32.5c this morning.