Sovereign Metals to power up from grid at Malawi rutile-graphite project

• SVM signs MoU for long-term supply of electricity to Kasiya rutile graphite project
• Deal comes as World Bank funds Malawi Hydropower project
• Project set to produce 222,000t of natural rutile and 233,000t of natural flake graphite per year

Special Report: Sovereign Metals has secured a Memorandum of Understanding (MoU) for grid power supply for its Kasiya rutile-graphite project in Malawi.

The deal comes as the World Bank approved a landmark Malawi hydropower project last week, with a US$350m grant to significantly increase Malawi’s installed capacity by 2030.

Once complete, the US$1.5Bn Mpatamanga Hydropower Storage Project (MHSP) will deliver 358MW of additional generation capacity to the Malawi electricity grid.

The total installed capacity in Malawi is 351MW, with about 98% of this capacity coming from hydropower.

The MHSP will be a boost for Sovereign Metals (ASX:SVM), along with this MoU with the Electricity Supply Corporation of Malawi (ESCOM) to supply 60MW of hydropower for steady-state operations through connection to the Nkhoma substation.

The MoU establishes the framework for negotiating the following future definitive agreements:

• Project implementation agreement, including construction and installation of a new 132kV overhead power line; and
• Power supply agreement, for the provision of bulk power supply from Malawi’s national grid.

More from SVM: Raise for world’s largest rutile deposit

World’s largest rutile and graphite producer

Over its planned 25-year life of mine, Kasiya is set to produce an annual average of 222,000t of natural rutile and 233,000t of natural flake graphite.

During stage 1, Kasiya’s power demand will amount to 30MW.  At steady-state, Sovereign is positioned to potentially be the world’s largest producer of natural rutile and natural flake graphite with an approximate power demand of 60MW.

To supply power from the hydro-based grid network, a 132kV overhead transmission line will be constructed to connect the Kasiya site to the Nkhoma substation, about 97km away.

“The signing of the MoU ensures we have a work plan to secure access to a renewable, hydro-based power supply for Kasiya,” SVM managing director and CEO Frank Eagar said.

“The future development of the Mpatamanga Hydro Project — expected to commence operations in 2030 — will further enhance the stability and capacity of Malawi’s electricity network.

“This also reflects ongoing foreign direct investment in Malawi’s infrastructure by the World Bank, IFC,and leading global energy companies such as EDF and TotalEnergies.”

A definitive feasibility study (DFS) for the project is next cab off the rank, due in Q4 2025.

This article was developed in collaboration with Sovereign Metals, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.