Global Metals and Mining, the company that will run the Kanyika Niobium Mining Project in Mzimba district has described its self as “in an extremely cash rich position, being debt free and with an excess of Australian Dollars of 44 million at the bank”.
Once operational the mining project is expected to rack in US$170 million per year.
Globe’s strategic partnership with ECE in April, 2011 provided it with immediate capital for the project.
“Niobium is a key additive in steel, so we now have a ‘steel story’, which ultimately means a ‘China story’. As a company we felt the best way to go about bringing together off-take with steel mills, financing and construction was to look at China as a one stop shop,” according to the company’s annual report released this week.
The partnership also meant additional resources for advancement frilling programmes in Malawi and Mozambique.
“It has been an exciting year of change for Globe…the rationale for the partnership was simple in terms of taking our Kanyika project through to final feasibility, construction, development and production,” the company’s managing director Mark Sumich said.
Sumich said his company is currently sitting in a prime position and likened it to the Chinese government owned East China Mineral Exploration and development Bureau (ECE) during a commodities boom.
Globe and Director General (ECE) Yi Shao said he is impressed with the progress of exploration since his company came on board.
“And we are committed to bringing the Kanyika project through to completion… as scheduled for the third quarter of 2012,” Shao said.
He also hailed the partnership with Globe saying the combined experience will see the company rapidly transforming to a mid-tier explorer and producer because of the significant cash baking.
The mining project is expected to transform Mzimba district in terms of social infrastructure such as roads, schools and health facilities and business opportunities apart from making a dent in Malawi’s Gross Domestic Product.Follow and Subscribe Nyasa TV :