Giyani Metals Corp (TSX-V:EMM, OTC:CATPF) CEO Charles FitzRoy joined Proactive to discuss the company’s new Special Economic Zone (SEZ) license for its commercial manganese plant site in Botswana.
FitzRoy emphasized the fiscal benefits, including a reduced tax rate of 5% for the first 10 years, compared to Botswana’s standard corporate tax of 22%.
The CEO also discussed the imminent production from Giyani’s demonstration plant in Johannesburg.
Proactive: Hello, you're watching Proactive. I'm joined by Giyani Metals CEO Charles FitzRoy. Very good to speak with you. You've announced that you've secured a special economic zone license for your plant site in Botswana. So, a significant milestone for Giyani?
Charles FitzRoy: Really good to see you. And fantastic news to be starting off 2025 with. Our commercial plant, which will be located in Botswana next to our ore sources, is a key part of our growth. We have about just under 2,000 square kilometers of licenses there, and our most progressed ore project is called the K.Hill Project.
We applied for and received a special economic zone license after a rigorous process with the government. They assessed Giyani on economic, social, and sustainability criteria, and deemed us suitable. This license means that our plant will sit in this zone, adjacent to the mine, and benefit from fiscal and non-fiscal advantages. The most notable is tax—a 5% tax rate for the first ten years and 10% thereafter. Botswana’s corporate tax is usually about 22%, so this is a huge saving.
And this is a 50-year license, right?
Yes, 50 years, with the possibility of multiple renewals. It’s a fantastic milestone for Giyani.
And, of course, you have your demo plant in Johannesburg nearing first production. All the learnings from there will be applied to this plant in Botswana, correct?
Yes, exactly. Our commercial facility in Botswana, now located in the special economic zone, will be about 10 times larger than the demonstration plant in Johannesburg.
The demo plant serves multiple purposes: de-risking the commercial facility, producing product for offtakers, and learning valuable lessons for the commercial plant’s ramp-up. This will ensure a faster and smoother transition when the larger facility is operational.
As of now, the demonstration facility is in the final stages of commissioning—transitioning from stage C4 to C5. We are very close to having our first product, and on February 1, we’re hosting an investor site visit, just before the Mining Indaba week. Investors will get to see the plant and, hopefully, the first products as well.
What else can your investors look forward to in 2025?
2025 is going to be a transformative year for Giyani. The demonstration plant is set to produce its first product imminently. Once that happens, we’ll ship samples to offtakers in North America, the EU, and Asia. This will initiate offtake discussions, which we aim to finalize quickly.
Our DFS, currently underway, is also due this year. Once it’s complete, we’ll move to finalize project financing and secure it as soon as possible. By next year, we aim to transition into project construction.
We’ve also strengthened our team by bringing on Sean Thijsse as Head of Corporate Development. Sean’s expertise in critical minerals and offtake will be invaluable as we move forward.
Quotes have been lightly edited for clarity and style