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- A recent study confirms Sovereign Metals’ (SVM) preferred logistic route is the best outcome for the Kasiya Rutile Project in Malawi
- The preferred logistics route uses the Nacala Corridor to reach the Nacala deep water port
- The logistics network is significantly under-used with only 15 per cent of the rail freight capacity currently in operation and the port only 41 per cent used
- On the market, Sovereign is trading in the grey at 52.5 cents per share at 3:14 pm AEST
A recent study has confirmed Sovereign Metals’ (SVM) preferred logistic route is the best outcome for the Kasiya Rutile Project in Malawi.
The study was conducted by an independent expert and approved the existing infrastructure for the export of mineral products .
The preferred logistics route uses the Nacala Corridor to reach the Nacala deep water port.
Notably, to reach the corridor there is one all-weather sealed road network.
This established operation-ready logistics infrastructure provides significant capital and operation cost savings for the company.
The logistics network is significantly under-used with only 15 per cent of the rail freight capacity currently in operation and the port only 41 per cent utilised.
Sovereign has an existing memorandum of understanding with Central East African Railways for rail freight, port access and port handling services, with discussions continuing for increased volumes based on the outcomes of the company’s forthcoming Scoping Study for Kasiya.
Managing Director Julian Stephens is happy with the recent report.
“The exceptional established infrastructure in Malawi should result in a positive capital and operating cost outcome for Kasiya,” Dr Stephens said.
“The availability of existing road, rail and port infrastructure for product export and project supplies imports provides a huge advantage for our world-class Kasiya Rutile Project.”
On the market, Sovereign was trading in the grey at 52.5 cents per share at 3:14 pm AEST.
