Globe clears Kanyika resettlement hurdle as mining start approaches

203 Households Receive Kanyika Compensation

Globe Metals & Mining Limited (ASX:GBE) has completed compensation payments to all 203 households in the Phase 1 resettlement area at its Kanyika Niobium Project in Malawi, moving the development from assessment into implementation. Payments were made directly into individual bank accounts, with the company saying the arrangement was designed to provide transparency and certainty to affected households.

The milestone removes one of the clearest immediate hurdles to accessing the broader Phase 1 development footprint. It does not, however, mark the end of the resettlement process: households have three months from receiving compensation to relocate and re-establish their homes and livelihoods, with Globe providing support including seeds, fertiliser and other agricultural assistance.

MWK 3.09 Billion Programme Covers Compensation and Support

The total Phase 1 resettlement budget is approximately MWK 3.09 billion, equivalent to A$2.5 million as stated by the company. Direct compensation accounts for about MWK 2.42 billion, including MWK 1.06 billion for trees and plants, MWK 633.7 million for structures, MWK 466.1 million for land, MWK 250.5 million in moving and disturbance allowances, and MWK 12.5 million for businesses.

A further MWK 59.2 million has been budgeted for community assets such as a church, boreholes, taps, a shallow well and a playground. The budget excludes graves, cemeteries and other cultural heritage sites, which are being dealt with separately through the Cultural Heritage Impact Assessment supporting an update to the project's environmental and social impact assessment.

Initial Mining Targeted Within Weeks

Globe says pre-development works are complete, including upgrades to the main access road, internal mine roads and camp access roads, as well as preparation of stockpile, brownfield and construction-camp areas. It is now targeting initial pit opening, mining and stockpiling over the coming weeks, with resettlement continuing in parallel.

The company also says the withdrawal and discontinuance of longstanding High Court proceedings, announced on 14 September, allows it, affected communities and government authorities to focus on the current compensation and resettlement programme. The filing does not confirm that mining has begun, nor does it provide production volumes or revenue guidance.

Director Funding Rises as Project Moves Toward Execution

Funding for the compensation payments is supported by an unsecured working capital facility from director Bo Tan, increased from US$600,000 to US$1.6 million. The repayment date has been extended to 30 June 2027, while the interest rate has risen from 12% to 16.5% per annum. The facility remains unsecured and represents related-party funding for a project that still has further development and operating milestones ahead.

The immediate test is execution rather than another assessment: whether the three-month relocation period proceeds as planned, whether land access is maintained, and whether Globe can begin the initial pit and stockpiling activities on its stated timetable. The unresolved cultural heritage work and the company's reliance on increased short-term funding leave important conditions around that next step.