Sovereign Metals Signs MoU with Traxys to Market Graphite from Kasiya Project in Malawi
ASX- and AIM-listed Sovereign Metals has signed a memorandum of understanding (MoU) with Traxys North America for the marketing and sale of graphite products from the Kasiya rutile and graphite project in Malawi.
The agreement positions Traxys as a potential strategic marketing partner for Sovereign’s future graphite production.
Strategic Marketing Partnership
Sovereign Managing Director Frank Eagar welcomed the agreement, noting that Traxys is one of the world’s leading physical commodity traders, with annual turnover exceeding $10 billion.
He also highlighted that Traxys has been selected as one of three trading houses participating in the US government’s $12-billion strategic critical minerals reserve initiative, known as Project Vault.
The programme is designed to secure reliable supplies of essential minerals amid global supply chain vulnerabilities.
Graphite is classified as a critical mineral in the United States and features prominently in policies aimed at reducing reliance on China-dominated supply chains.
Traxys’ involvement in strategic procurement initiatives, combined with its established global industrial customer base, enhances the potential for Kasiya’s graphite output to serve both government stockpiling programmes and commercial markets.
Supply Framework and Volumes
Under the MoU, the parties have agreed to negotiate in good faith towards a binding marketing agreement. If concluded, Traxys would market Sovereign’s graphite production on its behalf.
The proposed supply framework covers:
40,000 tonnes per year during the first five years of production
An increase to 80,000 tonnes per year as the project expands
The MoU envisages the supply of graphite concentrate, initially targeting refractory-grade markets, with potential expansion into battery anode material markets as demand grows.
Confidence in Kasiya’s Scale
Eagar said the agreement reflects growing confidence among global commodity traders in the scale and strategic significance of the Kasiya project.
The Kasiya deposit is regarded as a globally significant Tier 1 asset, with potential to deliver both natural rutile and graphite at scale commodities increasingly critical to energy transition technologies, advanced manufacturing and infrastructure development.
If formalised, the marketing partnership with Traxys would mark an important step in de-risking Sovereign’s commercial pathway as it advances Kasiya toward development.
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