Sovereign Metals Limited has signed a non-binding Memorandum of Understanding (MOU) with the Electricity Supply Corporation of Malawi (ESCOM) to secure grid power for its Kasiya Rutile-Graphite Project..
The MOU outlines the intent to negotiate two key agreements: a Project Implementation Agreement for the construction of a 132kV overhead power line, and a Power Supply Agreement for long-term electricity provision from Malawi’s national grid. Kasiya’s power demand is projected to reach 60MW at steady-state production, with an initial requirement of 30MW in Stage 1.
Managing Director and CEO Frank Eagar said: “The signing of the MOU ensures we have a workplan to secure access to a renewable, hydro-based power supply for Kasiya. The future development of the Mpatamanga hydro project – expected to commence operations in 2030 – will further enhance the stability and capacity of Malawi’s electricity network. This also reflects ongoing foreign direct investment in Malawi’s infrastructure by the World Bank, IFC, and leading global energy companies such as EDF and TotalEnergies.”
The planned 132kV line will connect Kasiya to the Nkhoma substation, located approximately 97km away. Nkhoma has been selected based on reliability, technical feasibility, and environmental and social considerations.
This development comes as the World Bank approved a US$350 million grant on 15 May 2025 to support the Mpatamanga hydropower storage project (MHSP), a major infrastructure initiative that will add 358MW to Malawi’s electricity generation capacity. The MHSP is co-developed by the Government of Malawi and the International Finance Corporation (IFC), alongside owners EDF, British International Investment, Norfund, and TotalEnergies.
In a World Bank statement, Nathan Belete, Country Director for Malawi, Tanzania, Zambia, and Zimbabwe, said: “This new hydropower project is a game-changer for Malawi, capable of catalyzing transformative change in productive economic sectors such as mining, agri-business and tourism. As the country works on driving its economic development agenda, this new source of clean and reliable energy will help drive business growth, create jobs, and improve the lives of millions of Malawians.”
The MHSP will use dams on the Shire River to generate and store energy, supporting peak electricity demand and enhancing grid stability. The project is part of a broader World Bank effort to strengthen Malawi’s energy infrastructure, which includes initiatives like the Emergency Power Restoration Project, the Mozambique-Malawi Regional Interconnector, and the ASCENT electrification program.
The MOU between Sovereign and ESCOM remains non-exclusive and non-binding. It will expire upon execution of the definitive agreements or by 30 June 2026, unless extended by mutual consent.
Kasiya is expected to operate for 25 years, producing an average of 222kt of natural rutile and 233kt of flake graphite per year, positioning Sovereign as a leading global supplier in both markets.
