LONDON: Sovereign Metals has signed a strategic collaboration agreement with International Finance Corporation (IFC) to advance the sustainable development of the Company’s Kasiya Rutile-Graphite Project in Malawi.
IFC is a member of the World Bank Group and the largest global development institution focused on the private sector in developing countries.
In fiscal year 2025, IFC committed a record US$71.7 billion to private companies and financial institutions in developing countries, with a total portfolio of US$68.5 billion as of 30 June 2025, demonstrating its commitment to financing major projects worldwide.
Under the Agreement:
· IFC will use its expertise to support aligning Kasiya with IFC’s environmental, social, and governance standards. IFC will complement Sovereign’s owner’s team and supplement Rio Tinto’s input for the development of the Environmental and Social Impact Assessment (ESIA) aligned with global best practice sustainability standards.
· IFC will have rights to finance Kasiya following the collaboration in accordance with the Agreement and subject to the Rio Tinto’s rights under the Investment Agreement. IFC may act as:
o Primary lender and/or mandated co-lead arranger for debt financing of the Project;
o Lead investor in debt or equity securities financing; and
o The term of the Agreement is 36 months (refer below for further details).
IFC’s track record demonstrates its commitment to partnering with leading miners, including Sovereign’s strategic investor, Rio Tinto, on tier-one projects.
Sovereign’s Chairman Ben Stoikovich: “IFC brings unmatched advantages to Kasiya’s development – decades of experience in Malawi, including in strategic infrastructure we intend to utilise, established government partnerships, and the institutional credibility that opens doors to international capital markets. This collaboration provides Sovereign with a clear pathway to financing while supporting Kasiya to meet the global standards that institutional investors require.”
Sovereign’s CEO Frank Eagar commented: “We are incredibly pleased to get IFC involved at this stage, as this will support our DFS and ESIA efforts to be aligned with IFC’s Environmental and Social Performance Standards, seeking to make the Kasiya Project DFS not just feasible but also bankable. Having IFC’s support validates Kasiya’s exceptional quality and strategic importance and takes us one step closer to project execution. The World Bank Group’s support for key enabling infrastructure, including the Nacala transport corridor and the Mpatamanga Hydropower Project, are expected to benefit the Kasiya project.”
IFC’S EXTENSIVE TRACK RECORD WITH WORLD-CLASS MINING ASSETS
IFC (www.ifc.org) has decades of experience in the metals and mining sector, financing some of the world’s largest and globally strategic mining projects across all stages, including construction, production, and expansion. As both a long-term equity partner and debt provider to major mining companies, including Sovereign’s strategic investor, Rio Tinto, IFC has supported large-scale mine developments and expansions across multiple continents.
WORLD BANK’S STRATEGIC PRESENCE IN MALAWI
The World Bank Group has a significant presence in Malawi through a Country Partnership Framework that supports the government’s Malawi 2063 Vision. Its activities include financing major enabling infrastructure like the Mpatamanga Hydropower Project, which is Malawi’s largest energy infrastructure project to date. IFC also previously played a role in mobilizing financing for the Nacala transport corridor, which extends through Malawi. The Kasiya Project is expected to directly benefit from these strategic infrastructure assets.