Kanyika Niobium Project

The Kanyika Niobium Project is Globe’s flagship project, and one that was discovered during grassroots exploration in 2006.  Globe is focused on completing the definitive feasibility study (DFS) in Q3 of 2012 to commence production in 2015.

Kanyika is approximately 150km from the capital of Malawi, Lilongwe, and in the southern part of the Mzimba District. Globe has a permanent office at Kanyika, in addition to its regional headquarters in Lilongwe.

Niobium, in the form of ferro-niobium, will be the main product from Kanyika, with bi-products to include tantalum oxide, uranium oxide and potentially also zircon.

The resource at Kanyika has been extensively drilled, with over 30,000m of drilling carried out to date.  A 60Mt resource has been established, including a component to the measured status, in accordance with the Australian Stock Exchange Listing Rules’ Joint Ore Reserves Committee (JORC) standard.

Table 1: Mineral Resource Estimates for Kanyika (1,500 ppm Nb₂O₅ lower cut).

Table 2: Mineral Resource Estimates for Kanyika (3,000 ppm Nb₂0₅ lower cut).

Production from Kanyika will be 3,000tpa or niobium metal, or 4,500tpa of ferro-niobium.  Globe’s market share will be less than 5% of total production, and the overall market is growing at an annual rate of 10-15% per annum.  As a key additive into sophisticated steel products, niobium’s use in steel manufacture is becoming increasingly critical and prevalent, with consumption growth rates twice that of steel itself.

Other aspects of the current definitive feasibility study include an environmental impact statement, concluding a “Development Agreement” with the Government of Malawi, securing off-take customers for the production and a detailed financial and economic analysis of the Project - view the Environmental Scoping Report.

Globe has also commenced negotiations with local authorities to facilitate resettlement of approximately 125 homesteads in preparation for project construction. Globe is working closely with the Mzimba District Commissioner and Traditional Authority to ensure the interests of all stakeholders are protected – view the Kanyika Resettlement Policy.