• Sovereign Metals signed a new rutile sales memorandum with Mitsui & Co. for its Kasiya project in Malawi.
• Mitsui could purchase up to 70,000 tonnes of rutile concentrate per year for an initial four-year period starting from expected production in 2030.
• The Kasiya project, currently estimated to cost $665 million, could produce 222,000 tonnes of rutile and 233,000 tonnes of graphite annually.

Sovereign Metals has signed a new memorandum of understanding with Mitsui & Co. covering the sale of rutile from its future Kasiya mine in Malawi, the company said on Thursday.

The agreement extends a long-standing relationship between the two companies as the Kasiya project moves toward the final stages of development ahead of construction.

Sovereign Metals and Mitsui previously signed a memorandum of understanding in 2022. That earlier agreement has since expired.

The new arrangement allows Mitsui to purchase up to 70,000 tonnes of rutile concentrate per year from the Kasiya project.

The companies structured the agreement for an initial four-year period starting from the beginning of production, which Sovereign Metals currently expects in 2030. The terms also include an option to extend the contract for an additional five years.

Sovereign Metals said the agreement supports its strategy to secure commercial outlets for the future production of the Kasiya mine.

At the same time, the partnership gives the project access to the Japanese market, which ranks as the world’s second-largest producer of titanium after China. Titanium producers derive the metal from rutile ore.

Sovereign Metals continues to build its commercial framework for the Kasiya project as development progresses.

Earlier in February, the company also signed a memorandum of understanding with commodities trader Traxys covering the marketing of graphite, the project’s other planned product. However, these arrangements still require conversion into binding commercial contracts.

In the case of Mitsui, the memorandum of understanding will remain valid for two years. During that period, both parties will negotiate the final terms of a definitive sales agreement.

Meanwhile, Sovereign Metals continues to advance development work on the Kasiya project. The company expects to publish a definitive feasibility study later this year. The study should update the project parameters, which currently estimate capital costs at $665 million.

According to current projections, the mine could produce an average of 222,000 tonnes of rutile and 233,000 tonnes of graphite per year. In addition, Sovereign Metals recently identified potential rare earth resources at the site. Rare earth elements represent a group of strategic metals that sit at the center of the global competition for critical mineral supply.

This article was initially published in French by Aurel Sèdjro Houenou

Adapted in English by Ange J.A de Berry Quenum