Potential investors have shown interest in the Kanyika Niobium Project (KNP) in Malawi’s northern district of Mzimba as the economic prospects of the mine become clearer, the Australian Stock Exchange (ASX)-listed Globe Metals and Mining, the licensed owner, has said.
In the company’s shareholder newsletter for April 2013, chairperson Shao Yi said they are committed to becoming the major supplier and producer of niobium and tantalum in Southern and Eastern Africa.
The company has since restructured its Africa business and withdrew from Memba joint venture in Mozambique to focus on development of the KNP.
“In addition, the company keeps working on other projects while it is pushing Kanyika forward as priority,” said Shao.
Currently, the company is working on completing the Definitive Feasibility Study (DFS) of the KNP as early as possible.
Globe Metals is being supported by its major shareholder East China Mineral Exploration and Development Bureau (ECE) and closely cooperates with several world-class niobium tantalum experts in China to optimise the technical flow sheet of DFS to further reduce the cost and enhance the economic feasibility.
“Those experts are optimistic regarding the potential of further optimisation and improvements,” said the official.
On the downside, the Globe’s share price has suffered along with a broader mining investment market downturn in recent months.
But the company has outlined its strategy and continuous improvement is a focus of management, noting that significant progress has been made on strengthening the internal control, integrating assets and reducing operational cost.
Globe’s cash position remains strong and the management system more efficient, said Shao.
He said the board is confident in the future development of Globe, particularly with the economic recovery in European and US markets, as well as the continually increasing demand from China, the world economy is warming up.
“The Company will use this transitional period to further optimise and finalise Kanyika DFS, reduce operational risk and improve the economic feasibility. Once the trend of global economy recovery establishes and the commodity price goes up, the company will launch the Kanyika Niobium Project,” said Shao.
Apart from KNP, company is working on other projects and is planning to carry out new exploration work on the projects of Muambe and Chiziro in Mozambique and Machinga in Malawi.
Globe is an African-focused resources company, which aims at becoming the major niobium and tantalum producer in Southern and Eastern Africa.