MRG Metals’ Corridor Sands JV Aims for 160,000 Tonnes First-Year Production

A Clear Path to Production

MRG Metals Limited has received a significant boost from its joint venture partner, Sinowin Lithium, which has outlined a detailed plan to commence production at the Corridor Sands Heavy Mineral Sands Project in Mozambique by March 2027. This project, boasting a colossal 2 billion tonne resource, is poised to become a major player in the heavy mineral sands sector, with Sinowin committing substantial funds and resources to ensure a smooth transition from exploration to production.

Sinowin has already invested over US$1 million in preparatory activities over the past twenty months, including external contracts and internal costs, demonstrating strong commitment ahead of the formal transfer of mining licences to the joint venture entity. This early deployment of capital underscores the confidence in the project’s potential and the desire to maintain momentum.

Regulatory Milestones and Social Commitments

Key regulatory milestones have been achieved recently, with the Environmental and Social Impact Assessment (ESIA) permit for Corridor Central granted on 27 January 2026. The next critical step is the completion of the Resettlement Action Plan (RAP), targeted for June 2026. While the RAP timeline carries some uncertainty, its timely approval is essential to keep the project on track for the March 2027 production start.

The JV partners have demonstrated a proactive approach to social and environmental responsibilities, which will be closely watched by investors and stakeholders alike. Any delays in RAP approval could necessitate adjustments to the development schedule, highlighting the importance of ongoing engagement with local communities and regulators.

Production Targets and Funding Commitments

Sinowin Lithium plans to sole fund the project through to production of 220,000 tonnes per annum of heavy mineral concentrate, with an initial US$6 million commitment. The first year’s production target is set between 130,000 and 160,000 tonnes, reflecting a cautious ramp-up phase. Ambitiously, the JV aims to scale production to 800,000 tonnes per annum within five years, signalling the long-term strategic value of the Corridor Sands asset.

This funding structure significantly de-risks MRG Metals by transferring the bulk of capital expenditure and operational risk to Sinowin, while allowing MRG to benefit from the project’s upside. The clear pathway to production and staged ramp-up provide investors with tangible milestones to monitor progress.

Diversification Beyond Heavy Mineral Sands

Alongside the Corridor Sands project, MRG Metals is advancing its rare earth portfolio, including the recent acquisition of the high-grade Garies Rare Earth Project in South Africa and ongoing exploration at the Adriano-Fotinho Rare Earth Corridor in Mozambique. These assets diversify MRG’s exposure beyond heavy mineral sands, tapping into the growing global demand for critical minerals used in clean energy technologies.

The Garies project, with promising bulk sampling results and a simple metallurgical profile, offers a potential fast-track development opportunity. Meanwhile, the Adriano-Fotinho corridor shows district-scale rare earth potential, positioning MRG as a multi-asset player in the critical minerals space.

Looking Ahead

MRG Metals Chairman Andrew Van Der Zwan emphasised the significance of the March 2027 production target, highlighting Sinowin’s sole funding commitment and the strong permitting progress. This milestone marks a pivotal moment for MRG, unlocking value from one of Mozambique’s largest heavy mineral sands deposits while maintaining a diversified growth strategy.

As the project advances through permitting and early construction phases, the market will be watching closely for updates on the Resettlement Action Plan and the pace of ramp-up activities. The interplay between regulatory approvals, funding deployment, and operational execution will shape the trajectory of this ambitious venture.