LONDON: Sovereign Metals Limited announced Tuesday it has signed a non-binding agreement with Malawi’s state power utility to secure long-term electricity supply for its Kasiya Rutile Graphite Project.
The memorandum of understanding with the Electricity Supply Corporation of Malawi (ESCOM) sets the stage for future negotiations on a power supply deal and infrastructure development, including a new 132-kilovolt overhead transmission line.
The Kasiya project, located in central Malawi, will require 30 megawatts of power during its initial phase, ramping up to 60 MW at full production. Malawi’s grid, which relies almost entirely on hydropower, currently has an installed capacity of 351 MW.
The agreement comes as Malawi expands its energy infrastructure with international support. On May 15, the World Bank approved a $350 million grant for the Mpatamanga Hydropower Storage Project, a $1.5 billion initiative expected to add 358 MW to the national grid by 2030.
Frank Eagar, Sovereign’s managing director and CEO, said the partnership ensures access to renewable hydropower and aligns with broader foreign investment in Malawi’s energy sector.
Kasiya, slated for a 25-year operation, aims to produce 222,000 metric tons of rutile and 233,000 metric tons of graphite annually, potentially making it the world’s largest supplier of both minerals.
The proposed power line will connect the mine to the Nkhoma substation, 97 kilometers (60 miles) away.
The World Bank has backed multiple energy projects in Malawi, including grid rehabilitation and regional interconnection programs. Nathan Belete, the bank’s director for Malawi, Tanzania, Zambia and Zimbabwe, called the Mpatamanga project a “game-changer” for economic growth.
The MOU with ESCOM remains non-binding and will expire by June 2026 unless extended. Sovereign expects to complete a definitive feasibility study for Kasiya by late 2025.
Sovereign Metals Limited is listed on the Australian (ASX: SVM), London (AIM: SVML) and U.S. OTC (OTCQX: SVMLF) exchanges.