Sovereign Metals Advances Kasiya DFS with $350m World Bank Power Boost
Sovereign Metals has marked significant progress at its Kasiya Rutile-Graphite Project in Malawi, completing key geotechnical studies and securing a power supply framework. New US tariffs on Chinese graphite elevate Kasiya’s strategic importance as a low-cost alternative.
- Completion of geotechnical drilling confirms favourable infrastructure conditions
- Non-binding power supply MOU signed with Malawi’s ESCOM
- World Bank approves US$350m grant for Malawi hydropower expansion
- Japanese titanium giant Toho Titanium validates Kasiya rutile quality
- US imposes steep tariffs on Chinese graphite, boosting Kasiya’s market potential
Geotechnical Milestone and Power Supply Framework
Sovereign Metals Limited has reported substantial advancement in its flagship Kasiya Rutile-Graphite Project during the June 2025 quarter. The company completed an extensive geotechnical drilling program across critical infrastructure sites, confirming favourable subsurface conditions that are expected to streamline construction and reduce costs. This foundational work supports the ongoing Definitive Feasibility Study (DFS), a key step toward project development.
In parallel, Sovereign signed a non-binding Memorandum of Understanding (MOU) with Malawi’s national electricity utility, ESCOM, to secure long-term power supply for Kasiya. The agreement lays the groundwork for future definitive contracts, including construction of a 132kV transmission line connecting Kasiya to the national grid via the Nkhoma substation. This is timely given Malawi’s current installed capacity of 549MW, predominantly hydropower-based.
Boost from World Bank Hydropower Grant
Adding to the positive energy outlook, the World Bank approved a US$350 million grant to support Malawi’s Mpatamanga Hydropower Storage Project. This large-scale initiative aims to add 358MW of renewable capacity by 2030, enhancing grid reliability and capacity. The project is expected to underpin economic growth and provide a cleaner energy source for sectors including mining, agriculture, and tourism.
Toho Titanium Endorses Kasiya Rutile Quality
On the product front, Toho Titanium Company Limited, a leading Japanese titanium metal producer, confirmed that Kasiya’s natural rutile meets the stringent specifications required for aerospace and industrial titanium products. This endorsement positions Sovereign Metals as a credible supplier to a highly demanding global market, especially amid geopolitical shifts emphasizing secure and diversified supply chains.
Graphite Market Dynamics and Strategic Opportunity
The graphite segment of Kasiya is gaining strategic significance following the US Commerce Department’s imposition of a 93.5% preliminary anti-dumping duty on Chinese graphite imports. This policy shift creates a substantial barrier for Chinese graphite, which currently dominates global supply chains. Sovereign’s Kasiya project, with an incremental production cost of US$241 per tonne, stands out as the world’s largest and lowest-cost non-Chinese natural graphite producer in development.
Recent testwork has optimized the coating process for Kasiya’s spherical purified graphite, achieving superior performance metrics critical for battery anode materials. This technical progress supports advancing offtake discussions with major manufacturers seeking secure, high-quality graphite supply outside China.
Community Impact Through Conservation Farming
Beyond mining, Sovereign’s expanded Conservation Farming Program has delivered remarkable social benefits, increasing crop yields for local farmers by fourfold on average, with some achieving tenfold improvements. This initiative underscores the company’s commitment to sustainable development and improving livelihoods in Malawi’s communities surrounding the Kasiya project.
Looking Ahead
As Sovereign Metals advances its DFS toward completion in Q4 2025, focus will intensify on finalizing mine fleet design, processing plant configuration, and logistics solutions. Concurrently, the company is progressing offtake negotiations for rutile and graphite products and expanding its community development programs. The evolving global graphite tariff landscape and enhanced power infrastructure in Malawi set a promising backdrop for Kasiya’s emergence as a strategic supplier in critical mineral markets.
Bottom Line?
With DFS milestones and strategic partnerships underway, Sovereign Metals is poised to capitalize on shifting global supply chains and Malawi’s growing energy infrastructure.
Questions in the middle?
- How will the final power agreements with ESCOM impact project timelines and costs?
- What progress is being made in securing binding offtake contracts for rutile and graphite?
- How might evolving global graphite tariffs influence Sovereign’s competitive positioning and pricing?
