Globe Metals & Mining Ltd (ASX:GBE) has secured a 12-month extension from the Malawi Government for the commencement of mine development at its Kanyika Niobium Project.
Time for critical processes
The extension will give Globe time to put its ducks in a row for the Kanyika Project’s development, which will see it deliver niobium to global markets.
Originally slated for September 27 this year – just under ten days away, the development works must now commence by 27 September 2025.
This extension provides the company with additional time to advance several critical processes essential for the project's success.
The extension was formalised under Globe’s Mine Development Agreement with the Malawi Government, which ensures the company remains in full compliance with its mining agreements, licences and permits.
The company had anticipated the need for this extension due to delays in finalising the MDA (TSX:MDA), and this extra time will allow for further detailed feasibility studies and community engagement ahead of the mining activities.
On September 17, Director General of the Mining and Minerals Regulatory Authority, S.N.D. Sakhuta, approved the extension in line with section 169(7) of the Mines and Minerals Act 2023, which permits such extensions when the licence holder demonstrates good faith efforts.
Globe's efforts endorsed
This extension follows an earlier letter from Malawi’s Department of Mines, issued in May 2023, which endorsed Globe’s efforts to mobilise resources for the project.
The letter confirmed that mine development was expected to commence 18 months after the MDA signing in March 2023, rather than from the original mining licence date of August 2021.
Globe CEO Paul Smith said: “Globe Metals & Mining is extremely grateful for the proactive and supportive relationship it enjoys with the Government of Malawi.
"The government’s willingness to approve an extension of time for commencement of substantial mine development at our Kanyika Project is a clear-cut positive for its development.
"The extra time provided by the extension gives us ample time to successfully progress several significant processes critical to the project’s eventual delivery.
"Some of these important processes are sign-offs on funding initiatives and offtake commitments, completion of technical (design and engineering) tasks, and, last but not least, delivery of key social and environmental commitments associated with the project.”