Sovereign Metals have signed an offtake MOU for their world class Kasiya titanium rutile project in Malawi.
Sovereign Metals said they have signed a memorandum of understanding with Hascor, a market leading global processor and distributor of rutile products for the welding industry.
The MOU would see a supply of 25,000 tonnes of natural rutile per annum delivered to Hascor which has processing plants across five continents.
Rutile prices of offtake destined for the welding industry generally demand a premium when compared to rutile used in pigments.
The MOU is non-exclusive and non-binding and is subject to ongoing negotiations. The MoU will expire on 31 December 2023 but has the option to be extended.
“We are very excited to have signed this MoU with a major rutile supplier like Hascor about a future offtake agreement and to provide input on marketing for our premium rutile products from Kasiya,” said Sovereign’s Managing Director Dr Julian Stephens.
“Hascor is a market leader in natural rutile product development and distribution for the welding industry across five continents. The offtake MoU with Hascor points to the quality and strategic nature of our world-class Kasiya Rutile Project.”
The global rutile market currently demands 2.8mt per annum and Sovereign Metals is well placed to serve this market with the Kasiya project, the world’s largest undeveloped Rutile resource.