Sovereign Metals Ltd (ASX:SVM, OTC:SVMLF, AIM:SVML) says Malawi’s new executive order prohibiting exports of raw minerals will not affect its Kasiya rutile–graphite project.
Similar to Lindian Resources Ltd (ASX:LIN, OTC:LINIF)'s announcement yesterday, SVM notes the order, issued by President Peter Mutharika, targets materials that have not been processed, refined or value-added in Malawi. Sovereign says its development plans for Kasiya involve in-country beneficiation and export only of finished mineral products.
For rutile, Sovereign plans to extract and process mineralisation in Malawi to produce a premium rutile concentrate exceeding 95% titanium dioxide (TiO₂), intended as direct feedstock for titanium sponge and other high-end titanium metal applications, including aerospace and defence. For graphite, the company intends to process run-of-mine material domestically to a product grading about 96% carbon for supply into industrial markets such as batteries and refractories.
Sovereign also states it has no plans to export run-of-mine heavy mineral sands or run-of-mine graphite, both of which fall under the scope of the executive order.
The company says it continues to work with the Government of Malawi and the Department of Mines on the ongoing development of Kasiya.