Canada-based Neo Performance Materials has signed a non-binding memorandum of understanding (MOU) with Globe Metals & Mining for the offtake of up to 150 tonnes (t) per year of niobium pentoxide from phase one of the Kanyika Niobium Project in Malawi.
This MOU lays the groundwork for a binding commercial offtake agreement, ensuring a steady supply of niobium pentoxide for Neo’s rare metals production facility, NPM Silmet, in Sillamäe, Estonia.
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The project is scheduled to commence production in the first quarter of 2027 (Q1 2027).
African-focused resources company Globe Metals & Mining CEO Paul Smith said: “The Neo MOU represents a watershed moment for the Kanyika Project. It means Globe has now signed multiple MOUs and a letter of intent that, as a package, cover offtake for 100% of Kanyika’s Phase 1 production of both niobium pentoxide and tantalum pentoxide.
“We look forward to a long and lasting relationship with Neo and are very pleased to be associated with such a highly regarded group, which enjoys a pre-eminent position in the global market for strategic and critical metals.”
Once the initial purchase quantities are met, the parties expect the offtake agreement to be renewed on an annual basis.
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By GlobalDataIn addition to niobium pentoxide, Neo has also secured a limited right of first refusal to acquire other critical metals produced at the Kanyika Project, including tantalum and zircon concentrates.
Neo Performance Materials CEO Rahim Suleman said: “We are laser-focused on diversifying and de-risking our supply chain, including our long-term access to critical metals, and expanding into increasingly more downstream value-added applications across all our business lines, including niobium and tantalum. The feedstock agreement with Globe provides an opportunity to engage in multi-year planning to optimise Neo’s supply chain.”
Last month, Globe Metals & Mining entered a non-binding MOU with Myst Trading for offtake of phase one output from the Kanyika Niobium Project in Malawi.
