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China Development Bank pledges $220 million loan for Kanyika Niobium Project
| Funder | China Development Bank (CDB) |
|---|---|
| Recipient Organization | Globe Metals and Mining |
| Country | Malawi |
| Start Date | Jul 10, 2012 |
| End Date | Dec 04, 2033 |
| Duration | 7,817 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 57893 |
Grant Description
China Development Bank pledges $220 million loan for Kanyika Niobium Project On July 10, 2012, China Development Bank (CDB) issued a Letter of Intent (LOI) to Globe Metals and Mining confirming that it will finance Kanyika Niobium Project in Mzimba (through Globe Metals and Mining an Australian company), which has a capital cost of $220 million (K55bn).
The LOI is non-binding, and subject to a number of conditions, including technical and financial due diligence, concluding terms for the provision of finance, relevant approvals from the governments of Malawi and China, and approval from the CDB credit committee.
The Kanyika project, with a 20-year lifespan, and an annual production of 3 000 tonnes per annum of niobium metal, tantalum, and uranium credits, has a capital cost of $220 million, a net present value (NPV) of $300 million (K75bn) and will bring in annual revenues of $180 million (K45bn). This project will produce Ferro niobium, an additive in some steels.
The loan details are unknown. In 2012, the Definitive Feasibility Study was underway for the project.
Sources & References
- Shareholder Newsletter
- Kanyika Niobium Project Update Excellent Infill Drill Results Received, https://www.asx.com.au/asxpdf/20120710/pdf/427b7c8jxfblxz.pdf
- China development bank to fund Kanyika project Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.
All Grantees
Globe Metals and Mining
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