• Sovereign Metals signs collaboration agreement with World Bank’s IFC

• IFC may finance Malawi Kasiya rutile, graphite project, costing $665 million

• Project studies ongoing; mine could generate $640 million annual revenue

Australian mining company Sovereign Metals said on Tuesday, Dec. 16, that it had signed a collaboration agreement with the International Finance Corporation (IFC), which could finance the development of the Kasiya rutile and graphite project in Malawi.

The IFC, a member of the World Bank Group, may support the project through several financing structures, according to Sovereign. Based on an updated pre-feasibility study (PFS) released in 2025, construction of the Kasiya mine would require an initial investment of $665 million. The IFC could participate as lead lender, act as mandated co-arranger for the project’s debt financing, or take a cornerstone position in debt or equity.

The two parties have up to three years to negotiate a financing agreement under one of these options. The IFC will also provide technical support to ensure that the project complies with its environmental, social, and governance standards.

“We are incredibly pleased to get IFC involved at this stage, as this will support our DFS and ESIA efforts to be aligned with IFC's Environmental and Social Performance Standards, seeking to make the Kasiya Project DFS not just feasible but also bankable,” Sovereign chief executive Frank Eagar said. “Having IFC's support validates Kasiya's exceptional quality and strategic importance and takes us one step closer to project execution.”

The IFC’s interest comes as Sovereign is carrying out environmental and social impact assessments (ESIA) alongside a definitive feasibility study (DFS). The results, expected next year, should provide further details on capital requirements, production levels, and projected revenues.

The PFS published in January 2025 estimates that the mine could produce an annual average of 222,000 tonnes of rutile and 233,000 tonnes of graphite over a 25-year lifespan. Average annual revenues are projected at $640 million, the study shows.

Sovereign has already partnered with Anglo-Australian mining group Rio Tinto on the project. Rio Tinto is the company’s largest shareholder, with an 18.45% stake, and is among the potential financiers for the construction of the Kasiya mine.

Emiliano Tossou