Sovereign Metals Limited (“Sovereign”) (ASX: SVM) is world’s largest Rutile Deposit, Rio Tinto Strategic Investor, PSF Completion SEP 2023
Sovereign Metals Limited (ASX:SVM & AIM:SVML) is an ASX and AIM-listed company focused on the development of its Kasiya rutile project in Malawi.
Kasiya, located in central Malawi, is the largest natural rutile deposit and one of the largest flake graphite deposits in the world. Sovereign is aiming to develop a sustainable operation to become a major supplier of highly sought-after natural rutile and graphite to global markets.
An Expanded Scoping Study (ESS) released in June 2022, confirmed Kasiya as potentially one of the world’s largest and lowest cost producers of natural rutile and natural graphite with a CO2-footprint substantially lower than other existing and planned operations.
The Company is in the advanced stages of a Pre-feasibility Study (PFS) for Kasiya. Sovereign expects to announce the outcomes of the PFS in the coming months.
Natural rutile is the purest, highest-grade natural form of titanium dioxide (TiO2) and is the preferred feedstock in manufacturing titanium metal (eg for use in aerospace) and producing titanium pigment (eg paints, inks and plastics). The rutile market is in extreme supply deficit with very limited supply.
Natural graphite is an essential industrial material with a diverse range of applications, including lithium-ion battery anode for electric vehicles. The demand for natural graphite has increased rapidly with the popularity of lithium-ion batteries used in electric vehicles.
In July 2023, Rio Tinto invested over A$40m to become a strategic investor. Rio Tinto’s strategic investment will fund the advancement of Kasiya, including progressing a Definitive Feasibility Study (DFS) focused on the development of a world-class, low-CO2-footprint mine capable of supplying to the titanium metal, titanium pigment and lithium-ion battery industries.