REG - Sovereign Metals Ltd - Kasiya Transport Corridor in Strategic Initiative

Sovereign MetalsAnnouncement

11/09/2025 07:00

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RNS Number : 9108Y  Sovereign Metals Limited  11 September 2025

 

NEWS RELEASE I 11 SEPTEMBER 2025

JAPAN TARGETS KASIYA TRANSPORT CORRIDOR IN NEW STRATEGIC MINERALS INITIATIVE

·    Japanese Government launches new Nacala Logistics Corridor
development initiative - aimed at strengthening critical mineral supply chains
from Malawi, Zambia and Mozambique

·    Japan commits US$7 billion in development funding - $5.5 billion
through joint program with African Development Bank, plus $1.5 billion in
public-private impact investment through Japan's development agency

·    Initiative focuses on capacity expansion, refurbishment, and
resilience upgrades to increase throughput, enhance reliability, and reduce
bottlenecks directly benefiting projects such as Kasiya positioning the
Project as a key beneficiary of Japan's mineral security strategy

·    Kasiya has established access to Japanese titanium markets - previous
validation by major Japanese titanium producer confirms Kasiya rutile meets
premium specifications

·    Nacala Corridor is Kasiya's preferred transport route - providing
lowest-cost pathway from Kasiya to international markets via a deep-water port

Sovereign Metals Limited (ASX:SVM; AIM:SVML; OTCQX:SVMLF) (Sovereign or the
Company) is pleased to announce that the Government of Japan has launched a
dedicated investment initiative targeting the Nacala Corridor infrastructure,
significantly strengthening the strategic positioning of the Company's Kasiya
Rutile-Graphite Project (Kasiya or Project) located in Malawi. Japan's Toho
Titanium Company Limited (Toho Titanium) previously confirmed that natural
rutile from Kasiya meets specifications for high-performance titanium metal
production, establishing market credentials that align with Japan's priority
of securing critical minerals supply chains through the corridor (refer to
announcement dated 10 June 2025).

The 9th Tokyo International Conference on African Development was held in
Yokohama, Japan, bringing together African leaders and international partners
to discuss development cooperation.

In his keynote address at the conference, the Japanese Prime Minister
announced: "We will launch a new region-wide co-creation for common agenda
initiative that promotes logistics in the Nacala Corridor, which contributes
to strengthening mineral resource supply."

Commenting on the announcement, Sovereign Metals CEO Frank Eagar said:
"Japan's commitment to the Nacala Corridor infrastructure validates our
strategic positioning and creates powerful opportunities for Kasiya's
development. The initiative demonstrates the highest level of government
backing for the corridor that underpins our project economics, while Japan's
focus on securing critical mineral supply chains aligns perfectly with
Kasiya's world-class rutile and graphite resources."

Japan's commitment to enhancing regional logistics positions Sovereign to
capitalise on growing Japanese demand for critical minerals. The initiative
underscores alignment between Japan's resource security objectives and
Malawi's position as host to the world's largest natural rutile deposit and
the second-largest flake graphite resource.

JAPAN'S STRATEGIC MINERAL SECURITY INITIATIVE STRENGTHENS KASIYA'S POSITION

In August 2025, the Japanese Government's Ministry of Foreign Affairs launched
the region-wide initiative "Strengthening Global Supply Chain through Nacala
Corridor Development" targeting development of mining and agricultural sectors
in Malawi, Mozambique and Zambia by eliminating bottlenecks along the Nacala
Corridor.

The initiative aims to improve transportation infrastructure and promote
industrial development in the Nacala Corridor region, including Malawi, to
increase its value as a transportation route for mineral resources and
ultimately strengthen Japan's global supply chains related to critical
minerals.

Figure 1: Kasiya is ideally located on the Nacala Corridor

Japan's US$7 billion commitment includes US$5.5 billion through the Enhanced
Private Sector Assistance for Africa program, which provides development
funding to African countries through the African Development Bank.
Additionally, US$1.5 billion will be mobilised through Japan's development
agency for direct investment in private sector projects, including mining and
infrastructure developments.

KASIYA'S STRATEGIC ADVANTAGES ALIGN WITH JAPANESE PRIORITIES

The initiative creates multiple strategic advantages for Kasiya, positioning
the Project as a key beneficiary of Japan's mineral security strategy. Japan's
Toho Titanium previously validated that rutile from Kasiya meets
specifications for high-performance titanium metal production, establishing
proven market access to Japanese industrial consumers. This technical
validation, combined with historical commercial interest from Mitsui &
Co., which established a Memorandum of Understanding with Sovereign regarding
rutile offtake, demonstrates sustained Japanese engagement with the Project.

The Nacala Corridor serves as the preferred transportation route for
Sovereign's forthcoming Definitive Feasibility Study, providing a direct route
to the deep-water port of Nacala and offering Kasiya a low-cost pathway to
global markets with significant capital and operating savings.

Japan's initiative focuses on capacity expansion, refurbishment, and
resilience upgrades to increase throughput, enhance reliability, and reduce
bottlenecks, directly benefiting projects such as Kasiya.

To access the Nacala Corridor, Sovereign plans to construct a six-kilometre
rail spur linking the proposed plant to the Nacala Corridor, ensuring
efficient freight handling. The Company is in discussions with leading
regional logistics providers on rail and port solutions to ensure reliable and
cost-efficient transport of rutile and graphite to international markets.

Figure 2: Bulk cargo trains operating on Nacala Corridor

Figure 3: Nacala Port is the deepest water port in Southern Africa

 

 

 Enquiries
 Frank Eagar, Managing Director & CEO

 South Africa / Malawi

 +27 21 140 3190

 Sapan Ghai, CCO

 London

 +44 207 478 3900

 

                                                

 Nominated Adviser on AIM and Joint Broker
 SP Angel Corporate Finance LLP                +44 20 3470 0470
 Ewan Leggat

 Charlie Bouverat
                                                
 Joint Broker                                   
 Stifel                                        +44 20 7710 7600
 Varun Talwar
 Ashton Clanfield

 Buchanan                                      + 44 20 7466 5000

 

Forward Looking Statement

This release may include forward-looking statements, which may be identified
by words such as "expects", "anticipates", "believes", "projects", "plans",
and similar expressions. These forward-looking statements are based on
Sovereign's expectations and beliefs concerning future events. Forward looking
statements are necessarily subject to risks, uncertainties and other factors,
many of which are outside the control of Sovereign, which could cause actual
results to differ materially from such statements. There can be no assurance
that forward-looking statements will prove to be correct. Sovereign makes no
undertaking to subsequently update or revise the forward-looking statements
made in this release, to reflect the circumstances or events after the date of
that release.

 

This announcement has been approved and authorised for release by the
Company's Managing Director & CEO, Frank Eagar.

 

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