Globe begins Kanyika mining after clearing key land-access hurdles

Early mining begins at Kanyika

Globe has started digging at Kanyika, but the next phase of its Malawi project will be judged as much by its funding capacity as by the first tonnes moved. Early mining began in October after the company completed access upgrades, site clearing and key land-access steps during the September quarter. The work involves successive excavation batches of about 5,000 tonnes for bulk sampling, grade verification, ore stockpiling and mine infrastructure development. It is not commercial production.

“The completed pit number 1”

Caption and image © Globe Metals & Mining Limited. From “Quarterly Activities/Appendix 5B Cash Flow Report”, 28 Oct 2026.

The company says the initial material is predominantly fine-grained and unconsolidated, with no significant hard rock encountered so far. Local contractor OG Plant Hire is carrying out the mining under Globe’s technical supervision. Suitable non-ore-bearing material is intended for plant terraces, foundations, roads and other supporting works, while mineralised material will be stockpiled for future processing plant commissioning and testing.

Land access and community disputes cleared

Globe completed compensation payments to all 203 households in the Phase 1 development area during September. The programme carries an estimated budget of MWK3.09 billion, described by the company as approximately A$2.5 million, including direct compensation, community assets, livelihood restoration and transitional support. Households have three months to relocate and re-establish their homes and livelihoods, while Globe has been granted access to compensated land during that period. The milestone builds on the Phase 1 compensation payments reported earlier in September.

A separate legal overhang also ended when 243 community members withdrew and discontinued proceedings that had begun in 2017. The case had concerned historical exploration, compensation and resettlement matters and had been disclosed as a contingent liability. Its formal discontinuance removes that specific proceeding, although the broader resettlement programme continues. The company’s latest update follows the Kanyika community case, which had described the withdrawal but noted that current land-access work remained outstanding.

Regulatory extension may require new capital

The more immediate constraint is financial. Globe ended September with A$3.52 million in cash after receiving A$1.59 million from option exercises and drawing an unsecured working capital facility from director Bo Tan. That facility was increased to US$1.6 million, carries interest of 16.5% a year and is repayable by 30 June 2027. It was fully drawn at quarter-end, following the earlier director working capital facility.

On the company’s Appendix 5B calculation, cash covered 1.1 quarters of relevant outgoings, which totalled A$3.061 million for the quarter. Globe says the figure was inflated by approximately A$2.2 million of one-off compensation payments, but also warns that future outflows could rise significantly if the Malawi Mining and Minerals Regulatory Authority’s proposed requirements are ratified. Those requirements include permanent infrastructure such as a processing plant, tailings storage facility, site offices and a run-of-mine pad.

Funding and FID remain unresolved

“Heavy equipment was mobilised to site to undertake road grading, access improvements, site clearing and preparation of areas required for future mining operations and…”

The MMRA has provided guidance for a further six-month development extension, subject to Board ratification. Globe is working through the engineering scope and sequencing before committing material capital, while continuing discussions with potential strategic investors and offtake partners. Talks with Sinomine over a possible strategic investment remain non-binding, with no agreement reached.

Globe continues to target first production in early 2028, conditional on funding, Final Investment Decision approval, construction and commissioning. The September quarter therefore delivers tangible progress on the ground, but it also brings the project’s central tension into sharper focus: early excavation can demonstrate momentum, while the permanent infrastructure needed to reach production still depends on regulatory approval and a durable financing solution.