Sovereign Metals, in collaboration with Rio Tinto, has completed an Optimized Prefeasibility Study (OPFS) for the Kasiya rutile/graphite project in Malawi, reinforcing its status as a leading global supplier of critical minerals outside China.
The OPFS, initiated after Rio Tinto’s 2023 strategic investment, reflects the work of a joint technical committee advancing the project’s development.
Despite adjustments in estimates, including a net present value (NPV) of $2.3 billion (down slightly from $2.4 billion in the previous PFS), the project’s fundamentals remain strong.
It is expected to deliver annual EBITDA of $409 million, with capital expenditure to first production set at $665 million.
Projected lifetime revenues stand at $16.4 billion, with operating costs estimated at $432 per ton for exported products through the Nacala port.
The OPFS replaces the previously proposed hydraulic mining with a large-scale open-pit dry mining operation using draglines and trucking. This change maintains the initial 25-year mine life but improves operational efficiency.
- Processing Plants: The updated plan involves constructing two 12-million-ton-per-year plants in the southern and northern areas of Kasiya without relocating facilities.
- Tailings Management: Backfilling mined-out pits and introducing mud farming techniques have reduced tailings volumes by 44%, minimizing environmental impact.
The study revealed significant improvements in water and power requirements:
- Water Demand: Annual water use has dropped by nearly 40% to 10.2 million cubic meters due to dry mining and mud farming techniques.
- Energy Supply: Improved grid reliability in Malawi eliminates the need for solar power, reducing costs and risks.
Over its 25-year life, Kasiya is forecasted to produce 222,000 tons of natural rutile and 233,000 tons of natural flake graphite annually.
At full production capacity, this will rise to 246,000 tons of rutile and 265,000 tons of graphite annually, positioning Sovereign as a world leader in natural rutile and flake graphite production.
With dwindling rutile reserves globally, Sovereign could become the only major producer of primary rutile at scale, while achieving the world’s lowest graphite production costs outside China at $241 per ton.
Kasiya’s rutile and graphite are tailored for high-end uses, including aerospace, defense, and battery production. The project utilizes cutting-edge separation technologies to ensure premium-grade output.
The project benefits from robust infrastructure, including sealed roads, hydro-powered electricity, and rail links via the Nacala Logistics Corridor to the Port of Nacala. The Port of Beira offers an alternative export route through the upgraded Sena Rail Line.
Kasiya’s optimized development plan solidifies its position as a cornerstone of global critical mineral supply, balancing economic returns with environmental stewardship and operational efficiency. This transformative project represents a milestone for Malawi and the global mining industry.
