Africa’s first large-scale niobium mine is now expected to start production in 2028, after further delays at the Kanyika project in Malawi, Australia’s Globe Metals & Mining said in a year-end update.
More than a year after announcing an initial delay in 2024, the company has yet to begin construction at Kanyika, which it hopes will become the continent’s first industrial-scale source of niobium. In a statement published on December 19, Globe said it remains focused on securing financing for the project, pushing back its production timeline by at least two years from the early 2026 target previously outlined.
The latest setback follows a series of extensions granted by Malawian authorities. In September 2024, the government gave Globe a one-year extension to begin construction, allowing the company time to raise funding, complete pre-construction engineering and finalize offtake agreements. None of those milestones has yet been achieved.
Against that backdrop, authorities in Lilongwe granted the miner a further 12-month extension in September this year. While the company has not provided firm evidence that development work can begin within the revised timeframe, it said it is now “well positioned” to comply.
“As we approach 2026, we are preparing for what could be our most transformational year yet,” Globe said, outlining plans to complete an updated bankable feasibility study (BFS) by March 2026, advance early works and align all prerequisites for a final investment decision.
The revised schedule pushes the first phase of production to 2028, with a second phase now expected in 2029, compared with an earlier plan that targeted early 2028 for expansion.
Despite the repeated delays, Globe has maintained its ambition for Kanyika, which it says will produce around 73,250 tonnes of niobium pentoxide and 3,240 tonnes of tantalum pentoxide over a 23-year mine life. The project is estimated to require total investment of about $250 million, with expected revenues of roughly $5.6 billion over its operating period.
If developed, Kanyika would be strategically significant in a niobium market dominated by Brazil. According to the U.S. Geological Survey, Brazil accounts for about 90 percent of global niobium supply, leaving the market highly concentrated.
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That dependence has raised concerns among policymakers and industrial users. In a 2024 study, the Center for Strategic and International Studies warned that such concentration exposes global supply chains to “significant vulnerability”, particularly as demand rises in strategic sectors.
Niobium is primarily used to strengthen steel, but demand is also growing from electronics, defence and electric vehicle industries. Market researchers at Dataintelo project the global niobium market to expand at a compound annual growth rate of about 8.7 percent through 2031, underlining the long-term appeal of new supply sources.
For Malawi, one of the world’s poorest countries, Kanyika could represent a new pillar of mining revenue if the project eventually comes on stream. The state will hold a free 10 percent stake in the mine and receive a five percent royalty on revenues, while Globe has also committed to allocating 0.45 percent of annual revenues to local communities under a community development agreement.
Several potential buyers have already expressed interest in future production. Globe has signed memorandums of understanding this year with alloy producer Affilips, as well as Myst Trading Pte and NEO Performance Materials, though binding offtake agreements have yet to be finalised.
For now, however, the project’s fate hinges on whether Globe can deliver on its promised milestones in 2026, particularly financing and a positive final investment decision. Until then, Africa’s long-awaited entry into the niobium market remains on hold.
Background on Niobium in Africa
Niobium is a strategic metal prized for its ability to strengthen steel while keeping it lightweight, making it essential for pipelines, construction, automotive manufacturing and high-performance alloys used in aerospace and defence. In recent years, demand has also been rising from electronics, renewable energy infrastructure and electric vehicles, as manufacturers seek materials that improve efficiency and durability.
Global supply, however, is highly concentrated. Brazil dominates the niobium market through a small number of large mines, leaving consumers exposed to supply disruptions and price volatility. This concentration has prompted governments and manufacturers to look for alternative sources, particularly as critical minerals move higher up national security agendas.
Malawi’s Kanyika project is seen as one such potential alternative. If developed, it would be Africa’s first industrial-scale niobium mine, placing the southern African country on the map for a mineral that is rarely produced outside South America. The project also includes tantalum, another high-value metal used in electronics such as smartphones and medical devices.
Mining plays a relatively modest role in Malawi’s economy compared with regional peers, with agriculture still accounting for the bulk of exports and employment. Existing mining activity is largely limited to coal, limestone and small-scale production of uranium, which has been intermittent due to price swings and operational challenges. Authorities have repeatedly said they want to diversify the economy by attracting long-term mining investment, particularly in minerals linked to global energy transition and industrial supply chains.
The Kanyika project has therefore been promoted by successive governments as a flagship investment. The Malawian state is expected to hold a free 10 percent equity stake, alongside royalty payments and community development contributions, giving the government a direct financial interest in the mine’s success. Officials have argued that niobium production could help stabilise export revenues and reduce dependence on tobacco, Malawi’s dominant but volatile foreign-exchange earner.
Delays at Kanyika reflect broader challenges facing mining projects in frontier markets, including access to financing, rising construction costs, and investor caution amid global economic uncertainty. Junior mining companies such as Globe Metals & Mining are particularly exposed to shifts in capital markets, as they rely heavily on external funding and offtake agreements to move projects from planning to construction.
Despite the setbacks, interest in niobium is expected to remain strong as countries seek to secure supplies of critical and specialty metals. For Malawi, the successful development of Kanyika would mark a significant step toward building a more diversified mining sector—while continued delays risk reinforcing investor concerns about execution and timelines in one of Africa’s least-developed economies.
