Sovereign Metals finds graphite off-taker in US

Sovereign Metals Limited, owners of Kasiya Rutile and Graphite Project in Lilongwe, has signed a non-binding off-take agreement with a US company Traxys North America for marketing of its graphite. Both Sovereign Metals and US Embassy in Lilongwe confirmed the deal, which targets the Traxys accessing about 40 000 metric tonnes (MT) per annum of graphite concentrate fbetween one and five years and up to 80 000MT per annum thereafter. Traxys is one of only three trading houses appointed to procure critical minerals for the US Government’s $12 billion Project Vault, the newly launched US Strategic Critical Minerals Reserve.

Sovereign Metals managing director Frank Eagar was quoted in the company’s update as having said the initial focus of the deal will be on high-value flake graphite for the refractory market, with potential to include flake graphite to serve battery anode supply chains. “Traxys is not only one of the world’s foremost physical commodity traders with annual turnover exceeding $10 billion, but has this month been selected as one of only three trading houses to procure critical minerals for the US Government,” he said. Eagar said the memorandum of understanding (MoU) demonstrates growing confidence from major global commodity players in Kasiya’s ability to potentially deliver critical minerals at scale from a globally strategic, genuine Tier 1 project.

The US Embassy confirmed the news in a brief statement saying through the deal, the US supports opportunities to create economic growth in Malawi and build secure diversified and resilient supply chains between the two countries. “Kasiya is the world’s largest known rutile deposit and the second largest flake graphite deposit globally. Responsible development of Malawi’s mineral resources is key to mutual economic security,” reads the statement.

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For marketing and selling Sovereign’s graphite production on its behalf, Traxys shall receive an indicative commission of six percent, according to the MoU details. Recently, Sovereign Metals Limited also partnered the International Finance Corporation in a deal that gives the World Bank Group’s private sector financing arm rights on the project. Geo-science expert in minerals, mining and metals Ignatius Kamwanje said the coming of the two global companies could fast track the processes during DFS and Esia due to its technical expertise.

He said: “As you might be aware, these companies and IFC are affiliated to more multilateral financiers mainly from the West so with the critical minerals growing demand, and with Rio Tinto’s reputation, they are willing to collaborate.” Chamber of Mines and Energy national coordinator Grain Malunga said there is need for the country to make serious investments in the extractive industry, calling for development of laboratories as the sector booms. In July 2024, Ministry of Energy and Mining signed two mining development agreements with Lotus Resources Limited, owners of Kayelekera Uranium Mine and Lancaster Exploration Limited for the Songwe Hill Rare Earth Project.

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