ASX- and Aim-listed Sovereign Metals reports that upgrades to the 399 km Nkaya–Mchinji railway section, which connects the Malawi–Zambia border to the Nacala Logistics Corridor (NLC), are currently underway.
This railway section traverses Sovereign Metals’ Kasiya rutile/graphite project tenements. The refurbishment of the segment connecting the Kanengo junction in Lilongwe district, where Kasiya is situated, to the NLC junction at Nkaya, is nearing completion.
The railway rehabilitation is an initiative by Malawi’s Ministry of Transport and Public Works and is part of the government’s Rail Strategy and Growth Plan.
This plan aims “to facilitate the provision of a safe, efficient, and sustainable rail transport system” to “promote socioeconomic development.”
Sovereign Metals highlights that the upgrade works, undertaken by the Central and Eastern African Railway (CEAR) company, will enhance the efficiency and capacity of the railway line. The completion is expected by the end of this year.
The upgrades include refurbishing railway bridges and reballasting to increase the load-bearing capacity from a current maximum axle load of 15 tonnes to 18 tonnes.
“Kasiya already benefits from exceptional existing infrastructure in central Malawi. This refurbishment project reaffirms Kasiya’s logistics solution with sufficient rail capacity, enhanced reliability, and a direct connection to the deep-water export Port of Nacala,” says Sovereign MD Frank Eagar.
“The infrastructure investment by CEAR and Nacala Logistics, along with approvals from the Malawi government, demonstrates the country’s commitment to achieving its major economic development goals, which include developing the mining industry and increasing Malawi’s export market.”
The NLC is the preferred logistics route to the deep-water Indian Ocean Port of Nacala for exporting to global markets.
This established and operational logistics infrastructure offers significant capital and operating cost savings to Kasiya.
Kasiya benefits from two transportation options for its rutile and graphite products: the NLC to the Port of Nacala and the Sena Rail Line to the Port of Beira (Beira Corridor).
The current upgrades to the Nkaya junction improve access to the NLC and will ultimately enhance access to the Beira Corridor.
To facilitate access to the NLC, Sovereign plans to build a 6 km rail spur to connect directly with the processing plant, increasing efficiencies in handling inbound and outbound freight compared to road alternatives.
The Beira Corridor, consisting of the Sena rail line and the Port of Beira, provides Sovereign with a second export route and is undergoing its own upgrade works.
Last year, the Beira Development Corridor Agreement was approved, aiming to connect the Democratic Republic of Congo, Zambia, Zimbabwe, and Malawi to the Mozambican Port of Beira through road and rail networks.
As Mozambique’s second-largest port, the Port of Beira is a significant driver of the region’s economy and an important gateway for global trade, handling a wide variety of containerized and bulk cargo.
The Beira Development Corridor Agreement project seeks to eliminate logistical bottlenecks for international and intra-African trade, with the African Development Bank being a major financier of the project.
