Globe Metals & Mining Ltd (ASX:GBE) has signed an offtake letter of intent (LOI) with Affilips NV for up to 32% – or around 100 tonnes – of expected annual high-purity niobium pentoxide production from Globe’s Kanyika Project.
Supplier to specialised European industries
It is hoped the LOI will lead to finalising a deal, which would start in May 2026, initially for three years, when the production of Phase 1 oxide is expected to be in full swing.
The letter outlines the framework for both parties to negotiate a binding offtake agreement for 32% of the Kanyika Niobium Project’s 313-tonne Phase 1 annual production.
Development of the Kanyika Project is expected to position Globe as a reliable supplier of in-demand niobium oxide for specialised industries based in Europe.
For its part, Affilips exports some 50,000 tonnes of master alloys a year to 80 countries.
The price paid by Affilips for this production will be negotiated depending on prevailing market conditions.
Globe and Affilips will work towards executing a binding offtake agreement by Q2 of 2025, with a full offtake agreement expected by September 1, 2025.
Kanyika BFS update
The update of Globe’s bankable feasibility study (BFS) is now underway. It will be based on the definitive feasibility study (DFS) completed and announced to the market in mid-calendar 2021.
The Affilips letter of intent on offtake is a key step in this BFS process.
Globe has elected to undertake the BFS using the Hydrofluoric Acid/Solvent Extraction (HF/SX) refining technology, which brings key advantages to the Kanyika project, including that an approved DFS, based on HF/SX refining in Malawi, is already in place, along with an approved EIA in Malawi using the technology.
The company also believes that using the HF/SX technology will help fast-track the development of the project and better ensure that it can deliver the product quality demanded by key off-takers.
This said, Globe continues to develop the chlorination refining route as an alternative competitive option to HF/SX refining.
About Affilips
Europe-based Affilips is a leading supplier of master alloys. It exports around 50,000 tonnes of master alloys annually to 80 countries, catering to a diverse range of metal industries.
Affilips in Tienen is renowned for producing aluminium, copper, nickel, cobalt and zinc-based master alloys, used in the production of specialised metal products such as specialty steels and superalloys for aircraft engines, nuclear reactors and other high-demand applications.
The group ensures consistent, high-quality products through certified quality and environmental management systems, modern laboratories and R&D facilities.
Affilips’ metallurgical plants are well-positioned near major ports, which provides ease of access to global shipping and local warehousing.
Globe CEO Paul Smith said: “This letter of intent with Affilips clearly demonstrates that Globe is making good progress in its stated intention to soon have offtake agreements in place for Phase 1 production at the Kanyika Project.
“Such agreements are a critical component of the project’s development and the subsequent generation of sustainable cash flows.
“In the meantime, our efforts to put long-term offtake relationships like that forming with Affilips will be incorporated into the BFS update, which is now materially progressed.
“We fully expect that this letter of intent is just the start of what will be a long and fruitful relationship between Globe and Affilips.
“The partnership is expected to give Globe an entrée to the lucrative European market, where Niobium is in demand by a host of specialised industrial companies.”
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