China Development Bank pledges $220 million loan for Kanyika Niobium Project
Pledged amount
$ 258307182.74368593
Adjusted pledged amount
$ 258307182.74368593
Constant 2021 USD
Not recommended for aggregates
This project is not recommended for use in creating aggregated sums. See the documentation for more information about this criteria.
Summary
Funding agency [Type]
China Development Bank (CDB) [State-owned Policy Bank]
Recipient
Malawi
Sector
Industry, mining, construction (Code: 320)
Flow type
Loan
Level of public liability
Unallocable
Infrastructure
No
Category
Project lifecycle
Description
On July 10, 2012, China Development Bank (CDB) issued a Letter of Intent (LOI) to Globe Metals and Mining confirming that it will finance Kanyika Niobium Project in Mzimba (through Globe Metals and Mining an Australian company), which has a capital cost of $220 million (K55bn). The LOI is non-binding, and subject to a number of conditions, including technical and financial due diligence, concluding terms for the provision of finance, relevant approvals from the governments of Malawi and China, and approval from the CDB credit committee. The Kanyika project, with a 20-year lifespan, and an annual production of 3 000 tonnes per annum of niobium metal, tantalum, and uranium credits, has a capital cost of $220 million, a net present value (NPV) of $300 million (K75bn) and will bring in annual revenues of $180 million (K45bn). This project will produce Ferro niobium, an additive in some steels. The loan details are unknown. In 2012, the Definitive Feasibility Study was underway for the project.
Number of official sources
3
Number of total sources
4
Details
Cofinanced
No
Direct receiving agencies [Type]
Globe Metals and Mining [Private Sector]