Rio Tinto has announced an additional €11.5 million investment to increase its shareholding in Sovereign Metals Limited to 19.76%, aiming to further the Kasiya Rutile-Graphite Project in Malawi. The project is considered a significant step towards unlocking a major new supply of low-CO2-footprint natural rutile and flake graphite.
The funds will advance the optimization of the Kasiya Project, poised to supply critical minerals to the titanium pigment, titanium metal, and lithium-ion battery industries.
Sovereign’s Chairman, Ben Stoikovich, stated, “Rio Tinto’s further investment reaffirms Kasiya’s position as a globally significant critical minerals project. With Rio Tinto’s experience, Kasiya is well-positioned to lead in low-CO2-footprint natural rutile and graphite.”
This investment follows Rio Tinto’s initial subscription in July 2023, shocasing confidence in the project’s potential.
Natural graphite typically has a significantly lower carbon footprint compared to synthetic graphite. The production of synthetic graphite can emit between 5 to 10 times more CO2, approximately 20-30 kg of CO2 per kilogram of graphite, due to energy-intensive processes involving the heating of petroleum coke. In contrast, natural graphite production generally emits around 3-5 kg of CO2 per kilogram. This substantial reduction in emissions generally tends to make natural graphite a more environmentally friendly option.
Full announcement: https://www.investi.com.au/api/announcements/svm/e87d4ddf-a0e.pdf
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