Globe Metals and Mining is teaming up with industry partners to fine-tune the extractive technologies needed to treat high-purity niobium pentoxide and tantalum concentrates from its Kanyika project in Malawi.
In addition to producing niobium and tantalum oxides, the company is investigating a second processing technology, looking to open up the lucrative ferro-niobium market.
A feasibility study completed last year outlined an impressive total EBITDA figure for a fully developed operation of US$3.74 billion across an initial mine life of 23 years.
Under the initial study, the company says it assumed that only niobium and tantalum oxides would be produced as the numbers did not stack up to produce ferro-niobium.
Curiously, the steel industry accounts for almost 90 per cent of all niobium produced, in the form of ferro-niobium, for use in high-strength alloy steels for the construction, automation, pipeline aerospace and defence sectors.
Under a confidential agreement, Globe has combined forces with an undisclosed technology partner whose patented technology has the potential to produce a 65 per cent ferro-niobium concentrate from Kanyika ore concentrates.
Preliminary test work so far has indicated Globe’s ore concentrates are “highly suitable feedstock” for the process.
The company is wasting no time investigating the new valuable processing stream, making arrangements for a bulk concentrate to be processed to validate the initial findings.
Management says the new technology does not use carbon, instead turning to renewable energy to manufacture steel and other metals — giving it a big green tick of approval.
According to Globe, the new technology is also cost-competitive, modular and scalable, enabling the company the option to build and scale up a plant on site.
In parallel with the cloak and dagger test work, Globe has also partnered up with TCM Research Limited which has developed advanced technology around the production of niobium, tantalum and other metals.
Globe is looking to use TCM’s technology to produce high-grade niobium and tantalum oxides destined for the automotive, electronics and medical industries.
Interestingly, researchers are discovering niobium oxide can also be used in electric vehicle batteries for stability, increased capacity, coatings and faster charging. With the electric battery market surging, Globe says industry forecasts expect the value of the niobium oxide market to rival that of the ferro-niobium market by the end of the decade.
TCM is in the mature planning phase to construct a manufacturing plant in neighbouring Zambia, presenting Globe with the option to either process its ore concentrates off-site or build its own scaled-down version at Kanyika.
Globe Metals and Mining Chief Executive Officer, Grant Hudson said: “The potential to produce ferro-niobium is in my view a game changer for Globe. The original full feasibility assumed that Globe would produce solely oxide products, as the production of ferro-niobium was not competitive.”
“Similarly, the TCM technology offers the ability to use the KNP concentrates and waste from the ferro-niobium process to produce high-quality niobium and tantalum oxides and to separately recover other valuable contained metals.”
Globe is aiming to produce high-purity niobium pentoxide and tantalum pentoxide powders from a JORC-compliant total resource of 68.3 million tonnes using a cut-off grade of 1500 parts per million niobium pentoxide.
The proposed mining and processing operation at Kanyika is expected to churn out about 11,300 tonnes of niobium and tantalum concentrate per annum on the back of newly unveiled proved and probable ore reserves of 33.8 million tonnes grading an average 3048 parts per million niobium pentoxide and 141ppm tantalum pentoxide.
With more than one string in its processing bow, Globe looks set to have all corners of the niobium market covered. Whilst the company awaits the expected tick of approval from the Malawi Government, it is tidying up the processing costs to feed back into its feasibility study. As the company enters a trading halt, market pundits will be curiously awaiting further news flow.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
06 Mar 2024
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