MoU signed for Malingunde Rail and Port services – A key project milestone
Sovereign Metals Limited (“the Company” or “Sovereign”) is pleased to report that it has signed a transport logistics MoU with Central East African Railways (“CEAR”), an infrastructure and logistics consortium which Vale SA and Mitsui & Co. Ltd operate and have significant ownership.
The MoU (“Agreement”) covers the provision of rail freight, port access & port handling services (“the Services”) by CEAR to Sovereign for graphite concentrates produced from the Malingunde Project, subject to the parties entering into a binding agreement.
Sovereign has now identified a secure and efficient pathway for the transport of its graphite concentrates in partnership with two world class organisations. This is a significant milestone in advancing the development of the exceptionally low-cost, high-quality natural flake graphite project at Malingunde.
- Provision of the Services for up to a 20-year term and 100,000tpa of concentrates, which provides upside to the Company’s initial 44,000tpa target.
- CEAR to supply and maintain all infrastructure, equipment and personnel required to provide the Services.
- CEAR is a consortium managed by Vale and Mitsui, global leaders in mining and trading natural resources, and associated provision of infrastructure services.
- The Malingunde Scoping Study logistics cost estimate of ˜US$65/t free on board (FOB) is based on indicative pricing for the Services.
Dr Julian Stephens, Sovereign‘s Managing Director commented, “The signing of the Agreement with such reputable multinational partners is a very important step for Sovereign, and we are delighted to have such experienced operators assisting us in advancing the Malingunde Project. The provision of port and rail services provides a clear pathway for the reliable and efficient transport of the high quality Malingunde concentrates for sale into global graphite markets.”
Source: Sovereign Metals Limited