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Globe Metals & Mining (ASX:GBE) has signed its second offtake agreement for the Phase 1 production of its Kanyika niobium project in Malawi, East Africa.
In a March 10 announcement, Globe revealed that the agreement is a non-binding memorandum of understanding (MoU) with Singapore-based physical metals and concentrates trader Myst Trading.
The first offtake agreement was signed with Affilips last September 2024, wherein Affilips would take 32 percent or approximately 100 tonnes of niobium pentoxide from Kanyika.
"The MOU with Myst confirms our significant progress in finalising offtake agreements for all Phase 1 production at the Kanyika Project,” Globe CEO Paul Smith commented. “Such agreements are a critical component of the Project's funding and ultimate development.”
The MoU covers Phase 1 production of the project and is set at an initial period of three years from the start of production in May 2026. Phase 1 capacity is set at 10 percent of full production.
Myst would be granted the right of first refusal to purchase 25 percent of the project’s annual niobium pentoxide production, amounting to about 76 tonnes. Combined with the Affilips offtake, 57 percent of Phase 1 niobium production from Kanyika is now accounted for.
If the agreement is finalized, Myst would also secure the right to purchase 100 percent of Kanyika's high-purity tantalum pentoxide production over the three year period. This is anticipated to be about 14 tonnes annually.
Globe and Myst are currently working towards a binding offtake agreement for the second quarter of 2025. A full offtake agreement is expected in September of this year.
Globe said that given Myst’s location in Singapore, the MoU also provides it with access to the tantalum and niobium oxide markets in Asia.
Looking at the bigger picture, Kanyika is expected to have an average annual production of 3,250 tonnes of niobium and 140 tonnes of tantalum over a 23-year mine life. The mine life is extendable to 38 years depending on the conversion of inferred resources.
The project is positioned to be the first commercial niobium operation in Africa. Artisanal miners in several African countries mine coltan, a mineral that contains niobium and tantalum.
Niobium production is currently primarily centered in Brazil, which produced 100,000 tonnes out of the 110,000 tonnes produced globally in 2024. Canada was the second highest producer of niobium at 7,100 tonnes.
