Power Feasibility Study – Mota-Engil – Kanyika Niobium Project
Highlights
- Mota-Engil to conduct a study into power options for the Kanyika Niobium Project, including hydro and diesel power
- Study to assess technical and economic aspects of the supply of power to the Project, including a review of existing surveys of water flows and volumes in adjacent river systems
- MOU between Globe and Mota-Engil for the supply of power to the Project by Mota-Engil
Summary
Globe Metals & Mining Limited (“Globe” or “the Company”; ASX: GBE) is pleased to announce that it has entered into a Memorandum of Understanding with Mota-Engil to carry out a study into the technical and economic options for the supply of power to the Kanyika Niobium Project.
Mota-Engil is a Portuguese-based industrial conglomerate, with principal activities including civil engineering and infrastructure construction, energy and steel works, transport concessions, environmental services and logistics. It operates in Europe, North America, South America and Africa (Mozambique, Angola and Malawi). In Malawi alone, Mota-Engil employs over 2,000 people, with operations including contract mining for Paladin Energy’s Kayelekera Uranium Mine and being recently named as the preferred bidder to run the Lake Malawi transport concession. 2009 revenues exceeded €2 billion (www.mota-engil.pt).
Globe’s Executive Chairman, Mr. Mark Sumich, said “we are happy to be working with Mota-Engil on the Kanyika Niobium Project. We have a long association with Mota-Engil in Malawi, and they have a significant presence in Sub-Saharan Africa, including Malawi.”
Memorandum of Understanding
- Mota-Engil will carry out an assessment of the electrical power sources available to the Kanyika Niobium Project.
- The assessment will have two aspects – the technical solutions available, including but not limited to diesel and hydro power, as well as the economic and financial feasibility of the potential solutions.
- One of the renewable sources of power to be considered is hydro power, due to the proximity of the Project to the Bua and Dwangwa rivers (see Figure 1 in the ASX announcement). Mota-Engil shall consider existing Government of Malawi survey data from these rivers for the purposes of determining their hydro production capacity.
- The final study will include a financial analysis of the available technical options, including capital and tariff rates.
- It is the intention of both parties that Globe will in the future engage Mota-Engil to supply power to the Kanyika Niobium Project. Globe is not obligated to pay Mota-Engil for the cost of the study unless this does not eventuate.
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