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Joint venture on Kanyika Niobium project

Joint agreement

Mark Sumich, managing director of
Globe Metals & Mining with Bill
Pullen, managing director of
Thuthuka Group Limited

Gauteng engineering firm Thuthuka Group Limited (TGL) has entered into a formal joint venture agreement with Globe Metals & Mining regarding Globe’s Kanyika niobium project in Malawi.

TGL is to invest US$10.6 million into the project, which will fund about 85% of the bankable feasibility study.

The contribution will earn TGL an immediate 25% interest in Globe’s wholly owned African subsidiary, which holds the project. TGL will fund the metallurgy and process design, mining, social and environment, infrastructure, procurement management, power plant study and design, as well as the transport and logistics study aspects of the bankable feasibility study. The work can be carried out by TGL or a third party.

“We are very pleased to be working with Globe on this exciting project. We believe there is an excellent synergy between the companies, which will substantially benefit this project,” TGL managing director Bill Pullen says.

Globe managing director Mark Sumich says TGL’s involvement was a testament to the technical and financial merits of the project. “Both its technical expertise and capital will make a significant contribution to the ongoing success of the project, and keeps Globe on track to commence production in 2012.”

Globe will fund the remaining 15% of the bankable feasibility study, which includes the geological work and marketing and off-takes. The study is set to begin immediately, with completion scheduled for 2010. TGL is to complete its components no later than April 2011.