The Malawi Government has extended an exploration licence to Africa-focused Globe Metals & Mining Limited at its Kanyika Project in Mzimba for two years.
Following the extension of the licence, it means the Australian Stock Exchange-listed company will continue to explore niobium at the mining site in the district up to December 29 2013, with a further two-year option to renew.
Globe Metals has been carrying a definitive feasibility study (DFS) on the Kanyika Niobium Project, which was planned for completion last December.
Ã¢â‚¬Å“The company, therefore, expects to be able to submit an application for a mining licence for the Kanyika Niobium Project well before the expiry of the current exploration licence,Ã¢â‚¬Â said the companyÃ¢â‚¬â„¢s managing director Mark Sumich in a statement released on Friday.
The multi-commodity Kanyika Project would start production of ferro-niobium in 2014, a key additive in sophisticated steels.
Apart from niobium, Kanyika is believed to also contain some other minerals such as uranium, tantalum and zircon.
The project is expected to last at least 20 years and employ 300 to 500 locals when production commences, according to Globe Metals.
Other projects at an earlier stage by Globe Metals include the Machinga Rare-earth Project in southern Malawi and the Mount Muambe rare earth-element fluorite project in Mozambique.