• Kasiya mine cost rises to $727 million, DFS shows

• Project targets major rutile and graphite output over 25 years

• Financing pending as partners show interest in strategic minerals

Construction costs for the Kasiya graphite and rutile mine in Malawi are now estimated at $727 million, according to a definitive feasibility study (DFS) released on Thursday, April 16, by Australian operator Sovereign Metals. This marks an increase from the $665 million projected in a previous study.

The investment is expected to support a mine producing 222,000 tons of rutile and 275,000 tons of graphite annually over an estimated 25-year lifespan. Based on these projections, the company expects cumulative revenues of $16.2 billion over the life of the project. The study indicates a pre-tax net present value (NPV) of $2.2 billion and an internal rate of return (IRR) of 23%.

“The completion of this DFS marks a defining milestone for Kasiya and for the global titanium and graphite supply chains,” Sovereign CEO Frank Eagar said. “The successful completion of large-scale field trials [...] reinforces Kasiya's potential to be a long-life, low-cost, and reliable source of two critical and globally strategic minerals.”

The company considers the project strategic. It could become the world’s largest natural rutile deposit and the second-largest flake graphite deposit. Its positioning in key markets, namely titanium for rutile and electric vehicle batteries for graphite, is already attracting interest from partners including trader Traxys and Japan’s Mitsui & Co.

No construction timeline has been set, as financing remains to be secured. Sovereign plans to rely on support from the International Finance Corporation (IFC), under a collaboration agreement announced in December, as well as from its main shareholder, Rio Tinto.

The company is also working to optimize the project, including the potential integration of rare earth resources. Over time, this could increase economic benefits for Malawi through higher mining revenues and local community gains.

Aurel Sèdjro Houenou