Globe Metals & Mining Ltd (ASX:GBE) has signed a community development agreement (CDA) with representatives of communities surrounding its Kanyika Niobium Project in central Malawi — a key milestone in Kanyika’s development plan.
The CDA sets out the guidelines for the management of the 0.45% of turnover that Globe must spend on projects to advance the interests of qualifying communities.
It also mandates the formation of the Kanyika Development Trust, which will give qualifying communities a direct say in the way this turnover is spent.
Globe will develop the Kanyika Project in two phases, substantially de-risking the project. The project will be fully integrated on the mine site – mining, concentration and refining — to produce high-purity, high-value niobium and tantalum oxides for direct export to western markets.
Recognising importance of communities
Globe (Africa) chairman Macleod Nyirongo said: “The signing of this community development agreement highlights Globe’s commitment to both championing and delivering good mining practices. It aligns with Globe’s stated policy of working with local communities in a respectful manner.
“The agreement provides the vehicle for local communities to highlight their problems and priorities. It will also help ensure Globe plays its role in finding solutions to these problems, in the process bettering the lives of community members.
“Under the CDA, Globe will be engaging with local people in all matters of community development, in recognition of the critical importance of local communities’ cultural heritage. Diversity of views will aid Globe’s commitment to inclusive partnerships with all key players in the development.
"Proud ESG credentials"
“The signing of the agreement also goes hand in hand with Globe’s proud ESG credentials. It ensures that due regard is given to environmental protection, good governance and the social changes that accompany mining investments, taking the necessary care to address them as the project’s development occurs.
“Across Globe’s planned vertically integrated operation, from mineral extraction through to the refined product stage, the company will have the health and safety of people as its number 1 priority.
“With the CDA signed, all stakeholders in the Kanyika Project – comprising the company as well as the Government, the local communities and NGO partners – can be confident that respect, transparency and accountability will be delivered.”
The signing ceremony was attended by various senior dignitaries, including paramount chief Inkosi ya Makhosi M’mbelwa V and senior chief Inkosi Mabulabo of Kanyika as well as senior members of the Ministry of Mines.
Group photo of community members in attendance at the signing ceremony.