Name of the Project
Kasiya rutile/graphite project.

Location
Central Malawi.

Project Owner/s
Mining and exploration company Sovereign Metals and iron-ore major Rio Tinto.

Rio Tinto invested in Sovereign in July 2023, resulting in an initial 15% shareholding and options, and expiring within 12 months of initial investment, to increase its position to 19.99%. Under the investment agreement, Rio Tinto will provide assistance and advice on technical and marketing aspects of Kasiya, including on Sovereign’s graphite co-product, with a primary focus on spherical purified graphite for the lithium-ion battery anode market.

Project Description
Kasiya is the biggest natural rutile deposit, and second-largest flake graphite deposit, in the world. The project has an inferred resource of 609-million tonnes grading 0.9% rutile and 1.1% graphite, for total contained tonnages of 5.7-million and 6.5-million for the two minerals respectively.

A prefeasibility study has confirmed a potentially major critical minerals project, with an extremely low CO₂ footprint delivering significant volumes of natural rutile and graphite while generating significant economic returns.

The proposed large-scale operation will process 24-million tonnes of ore a year to produce an estimated 245 000 t of natural rutile, and 288 000 t of natural graphite, a year at steady state, for an initial mine life of 25 years.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at an 8% discount rate, of $1.61-billion and an internal rate of return of 28%, with a payback of 4.3 years from the start of production.

Capital Expenditure
Capital costs to first production are estimated at $597-million. Expansion capital is estimated at $287-million.

Planned Start/End Date
Not stated.

Latest Developments
Sovereign Metals completed the test pit backfilling and started soil remediation as part of its pilot mining and land rehabilitation programme in December.

The test pit, excavated during mining trials, was backfilled with 170 000 m³ of mined material within two months – well ahead of schedule. The findings from this test pit will inform future operational strategies.

Using a conventional excavator fleet, Sovereign restored the pit to its original ground level. This achievement not only validated the efficiency of Sovereign’s operational strategies but also set the stage for comprehensive land rehabilitation.

Sovereign has also implemented a structured rehabilitation strategy to restore the mined land, focusing on agronomic principles to promote sustainable farming and diverse land use.

The process starts with the application of locally sourced dolomitic lime to address the naturally low pH levels of the soil, thereby creating a foundation for improved agricultural productivity.

Following the lime treatment, the soil will be enriched with essential nutrients. Organic carbon is introduced through biochar, while fertilisers, such as potash, phosphate and nitrogen, phosphorus and potassium blends, provide the vital elements needed for soil regeneration and crop growth.

Meanwhile, land preparation techniques ensure the proper integration of these materials into the soil. Grading, ripping and discing are conducted using locally sourced farming equipment, which also levels the land to make it safe and suitable for farming.

Rehabilitation crops are then planted to capitalise on the summer rainfall, enhancing the soil’s carbon levels and bioactivity. Giant bamboo, a key rehabilitation crop, is planted in structured blocks, while maize and cover crops are intercropped between the bamboo. This combination supports soil health while allowing for the land to return to a condition suitable for farming, Sovereign has said.

The miner has also established a robust monitoring and evaluation system to assess the progress of soil remediation, plant growth and crop yields.

By collaborating with local farmers, the miner is testing new seed varieties, implementing conservation farming techniques and creating a nursery for indigenous plants. This engagement ensures continuous improvement in rehabilitation outcomes while providing a live demonstration of the land's return to productive use, it explains.

This proactive rehabilitation strategy mitigates the environmental impact of mining while ensuring long-term agricultural productivity.

Local farmers benefit from enhanced farming practices, composting operations and access to a nursery for indigenous and fruit crops.

Key Contracts, Suppliers, and Consultants
SocialEssence (continued development of Sovereign’s stakeholder relations, social performance objectives and its corporate social responsibility framework); and Fraser Alexander (mining trial).

Contact Details for Project Information
Sovereign Metals, Tel +61 8 9322 6322, or email info@sovereignmetals.com.au.