Malawi focussed niobium developer, Globe Metals & Mining (ASX: GBE) has commenced discussions with potential off-takers.
Following a trip to China, Globe Managing Director, Mark Sumich said interest was strong for offtake for its Kanyika Niobium Project in central Malawi, Africa from Chinese steel mills and traders.
Investors may recall that Globe commissioned a Pre-Feasibility Study for the project in September 2008 and production is planned to commence in 2012 at a rate of 3,000tpa niobium metal, principally in the form of ferro-niobium.
Globe has already entered into existing supply arrangements, representing 35% of Globe’s planned niobium production of 3,000tpa from Kanyika, which are due to commence in 2012.
Demand for ferro-niobium in China is very strong, and the outlook even more positive. China currently represents ~20% of FeNb consumption and at least 50% of the growth in this market. Global niobium consumption increased 7.9% per annum over the period 1990-2008.
The Kanyika Niobium Project in central Malawi is a multi-commodity (niobium, uranium, tantalum and zircon) contains a 55.3Mt Inferred and Indicated JORC resource @ 3,000ppm Nb2O5, including a higher grade 24.0Mt component @ 3,800ppm Nb2O5. The Indicated JORC resource component is 13.2Mt @ 3,600ppm Nb2O5, including a higher grade 8.5Mt component @ 4,200ppm Nb2O5.
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