Australian Securities Exchange (ASX)- listed mining firm, Sovereign Metals Limited, currently exploring rutile and graphite at Kasiya in Lilongwe, has said it is encouraged by the upgrading of the 399km Nkaya-Mchinji section of railway currently underway as part of Government of Malawi’s Rail Strategy and Growth Plan.
In a statement released Thursday, Sovereign Metals says the railway runs across its Kasiya Rutile-Graphite tenements from Mchinji at the Malawi-Zambia border to Nkaya Junction, where it connects to the Nacala Logistics Corridor, providing an export route through the deep-water port of Nacala.
The firm says the refurbishment of the railway will improve efficiency and capacity and is being undertaken by Central and Eastern African Railway Company (Cear) with completion expected by end of 2024
The upgrade works include refurbishing rail bridges and reballasting along the section through Kasiya to increase maximum axle load from 15 tonnes to 18 tonnes.
- Advertisement -
According to Sovereign Metals, Nacala Logistics Corridor is the preferred logistics route for exporting Sovereign’s rutile and graphite products to global customers, with the Sena Rail Line to the Port of Beira offering a secondary route.
- Advertisement -
Sovereign Metals Managing Director Frank Eagar said Kasiya already benefits from exceptional existing infrastructure in central Malawi.
“This refurbishment project re-affirms Kasiya’s logistics solution with sufficient rail capacity, enhanced reliability and a direct connection to the deep-water export Port of Nacala.
“The infrastructure investment by Cear and Nacala Logistics along with approvals from the Malawi Government is a demonstration of the country’s commitment to achieving its major economic development goals which include developing the mining industry and increasing Malawi’s export market,” Eagar said.
Meanwhile, the miner has engaged Dhamana Consulting and C12 Consultants to conduct an Environmental and Social Impact Assessment (ESIA) on the site.
- Advertisement -
The ESIA is being conducted to assess the potential environmental and social impacts of the project and propose mitigation and enhancement measures.
According to Dhamana Consulting, and C12 Consultants the ESIA is being undertaken in compliance with the Environmental Management Act, Guidelines of Environmental Impact Assessment (1997) and will be consistent with good international industry practices including the International Finance Corporation (IFC) Performance Standards (2012).
A pre-feasibility study completed last year, revealed the potential to mine an initial 538 million tonnes over 25 years was investigated.
Sovereign is currently undertaking a Definitive Feasibility Study (DFS) to further refine the design of the Project.
Kasiya’s Mineral Resource Estimate is 1.8 billion tonnes at 1 percent rutile resulting in 17.9 metric tonnes of contained natural rutile and 24.4 metric of contained graphite.
Kasiya is the largest rutile deposit in the world with more than double the contained rutile as its nearest rutile peer, Sierra Rutile.
Speaking at the start of the inaugural Malawi Mining Investment Forum in April, President Lazarus Chakwera has said he sees mining contributing significantly to ending Malawi’s foreign exchange woes by 2030.
The Malawi leader said because of the investments that banks and other international investors are bringing to support the mining sector, he is optimistic that the forex that is scare today will be in abundance because of the minerals.
