The International Finance Corporation (IFC), the private-sector financing arm of the World Bank Group, has agreed to support the development of Malawi’s Kasiya Rutile and Graphite Project, a move that could accelerate one of the world’s largest known rutile deposits toward production.
Australia-listed Sovereign Metals, which owns the Kasiya project in central Malawi, said the agreement gives the IFC a key role in technical support and potential financing as the project advances toward its definitive feasibility study (DFS), expected in the first quarter of 2026.
Under the agreement, the IFC will provide advisory and technical assistance during the DFS and the Environmental and Social Impact Assessment (ESIA), while positioning itself as a potential lender or arranger of financing for mine development.
In a statement, Sovereign Metals said the IFC could act as a lender or mandated co-lead arranger for part or all of the project’s financing, through senior, subordinate or mezzanine loans, or by mobilising funds from third-party lenders. The IFC may also subscribe to debt or equity securities linked to the project, provided its voting power in Sovereign does not exceed 19.9 percent.
The agreement runs for an initial period of 36 months and includes a right for the IFC to match any third-party offer received by Sovereign to fund construction of the mine.
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The deal comes several years after global mining giant Rio Tinto acquired a stake in Sovereign Metals, boosting the profile of the Kasiya project, which the company says hosts the world’s largest natural rutile resource. Rutile, a titanium dioxide mineral, is used in pigments, aerospace applications and increasingly in high-performance and low-carbon technologies.
Sovereign Metals chief executive Frank Eagar said IFC’s involvement would help align the project with international standards and investor expectations.
“This collaboration provides Sovereign with a clear pathway to financing while supporting Kasiya to meet the global standards that institutional investors require,” Eagar said. “Having IFC’s support validates Kasiya’s exceptional quality and strategic importance and takes us one step closer to project execution.”
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He added that the World Bank Group’s broader investments in regional infrastructure, including the Nacala transport corridor and the Mpatamanga Hydropower Project, were expected to support the project’s development and logistics.
Analysts say the IFC’s backing signals growing international interest in Malawi’s mineral sector, particularly as demand for critical minerals rises amid the global energy transition.
Geologist Ignatius Kamwanje said IFC’s technical expertise could help fast-track key studies and financing.
“With IFC involved, the DFS and ESIA processes could move faster because of the institution’s experience and access to multilateral financiers,” Kamwanje said. He added that Rio Tinto’s earlier involvement had strengthened investor confidence in the project.
Another geologist and former energy minister, Grain Malunga, said Malawi needed to increase investment in mining-related infrastructure and technical capacity, including laboratories, as exploration and development activity expands.
Malawi has been seeking to position mining as a driver of economic growth and foreign investment. In July 2024, the government signed mining development agreements with Lotus Resources for the Kayelekera uranium mine in northern Malawi and with Lancaster Exploration for the Songwe Hill rare earths project in the south.
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The Kasiya project, which combines rutile and graphite, is expected to have a mine life of around 25 years, according to Sovereign Metals. If developed, it could become one of Malawi’s largest mining operations and a major source of export revenue.
Malawi remains one of the world’s poorest countries and is highly dependent on agriculture, making it vulnerable to climate shocks. Authorities hope that large-scale mining projects, if managed effectively, could help diversify the economy and strengthen public finances.
However, civil society groups have repeatedly called for stronger environmental safeguards and community engagement in mining projects, underscoring the importance of rigorous impact assessments.
With the IFC’s involvement, observers say the Kasiya project will face heightened scrutiny on environmental, social and governance standards, potentially setting a benchmark for future large-scale mining developments in Malawi.
