HomeEast AfricaSovereign Metals signs transport logistics MoU with Central East African Railways

Sovereign Metals signs transport logistics MoU with Central East African Railways

The MoU between Sovereign Metals and Central East African Railways (CEAR), covers the provision of rail freight, port access and port handling services by CEAR to Sovereign Metals for graphite concentrates produced from the Malingunde project, subject to the parties entering into a binding agreement.

Sovereign Metals has now identified a secure and efficient pathway for the transport of its graphite concentrates in partnership with two world class organisations.

This is a significant milestone in advancing the development of the exceptionally low-cost, high-quality natural flake graphite project at Malingunde.

“The signing of the agreement with such reputable multinational partners is a very important step for Sovereign, and we are delighted to have such experienced operators assisting us in advancing the Malingunde project,” comments Sovereign Metals MD, Dr Julian Stephens.

“The provision of port and rail services provides a clear pathway for the reliable and efficient transport of the high quality Malingunde concentrates for sale into global graphite markets.”

The significant benefits of rail

Sovereign Metals’ scoping study considers production of approximately 44 000 tpa of graphite concentrates, equating to the movement of approximately 2 000 twenty foot shipping containers per year from Malingunde
to the deep water port of Nacala.

A single train can transport up to 84 containers at one time, meaning that Sovereign Metals will only require
approximately one train movement every two weeks.

The Nacala logistics corridor

The development of the Nacala logistics corridor was essential for the expansion of Vale & Mitsui’s coal extraction activities in the Tete region of Mozambique, with US$4.4 billion having been invested to date and a further $460 million planned investment in port and rail facilities to increase general cargo throughput capacity.

The Nacala logistics corridor connects Tete to Nacala, but importantly for Sovereign Metals, the railway travels
through Malawi, and includes an operating rail line north to Lilongwe, passing within 25 km’s of Sovereign Metals’
Malingunde project.

Feature image credit: Wikimedia Commons