Globe Metals Clears Last Social Barrier at Kanyika With Mining Set to Start
Key Takeaways
- Compensation payments totalling MWK 2.42 billion have been disbursed directly to all 203 Phase 1 Project Affected Persons at the Kanyika Niobium Project, removing the primary social and legal barrier to development.
- Historical High Court proceedings have been formally withdrawn and discontinued as of 14 September 2026, eliminating a legal overhang that had previously constrained the project.
- Pre-development works are complete — including main access road upgrades, internal mine roads, and stockpile area preparation — with initial pit opening and stockpiling now targeted in coming weeks.
- The Government of Malawi and local Chiefs have confirmed Globe can access compensated land during the three-month PAP relocation period, meaning mining activity does not wait for relocation to conclude.
- Director Bo Tan has increased his working capital facility from US$600,000 to US$1.6 million to fund the compensation programme, with repayment extended to 30 June 2027 at 16.5% per annum.
Kanyika resettlement milestone clears the way for initial mining
Globe Metals & Mining (ASX: GBE) has completed compensation disbursements to all 203 Phase 1 Project Affected Persons (PAPs) at the Kanyika Niobium Project in Malawi, marking a significant de-risking milestone for the project. With a total Phase 1 budget of MWK 3.09 billion (A$2.5 million) committed, historical High Court proceedings formally withdrawn, and pre-development works already completed, the company is now targeting initial pit opening, mining, and stockpiling in coming weeks.
This represents the transition from assessment to active development at Kanyika.
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What the Phase 1 resettlement process involved
The compensation process was structured around a multi-stakeholder framework involving the Government of Malawi, the M’mbelwa District Council, independent specialists SLR, community representatives, and the PAPs themselves. It was conducted with regard to applicable Malawian law and recognised international standards, including the IFC Performance Standards on Environmental and Social Sustainability.
The key process steps unfolded in sequence:
- Community and stakeholder engagement forum held 27 April 2026
- Census and asset survey conducted 1–12 May 2026
- Individual asset profiles presented to PAPs for verification 26 May–1 June 2026
- Market-based valuations reviewed by the Ministry of Lands, Housing and Urban Development, including adjustments to land and certain tree rates
- Individual compensation agreements executed with each PAP, witnessed by SLR consultant and a Government representative
- Payments made directly into individual PAP bank accounts
Each household had the opportunity to verify its own recorded assets and compensation entitlement before agreements were executed, providing an auditable record for every affected PAP.
Breaking down the MWK 2.42 billion in direct PAP compensation
Direct compensation to the 203 Phase 1 households totalled approximately MWK 2.42 billion, with trees and plants representing the largest single component. The full breakdown is shown below.
| Compensation Category | MWK million |
|---|---|
| Land | 466.1 |
| Structures | 633.7 |
| Businesses | 12.5 |
| Trees and plants | 1,056.5 |
| Moving and disturbance allowances | 250.5 |
| Total PAP compensation | 2,419.3 |
Beyond direct PAP payments, approximately MWK 59.2 million has been budgeted for community assets, including a church, community boreholes, taps, a shallow well, and a playground. The relocation of graves, cemeteries, and cultural heritage sites is being addressed separately through the Cultural Heritage Impact Assessment as part of the ESIA update.
What this means for investors — path to mining now open
The completion of Phase 1 compensation payments removes a key social and legal barrier that had previously constrained development activity at Kanyika. The Phase 1 footprint is now progressively being released for construction and development.
Several enabling milestones have now converged:
- Compensation payments to all 203 Phase 1 PAPs completed, with funds paid directly to individual bank accounts
- Historical High Court proceedings formally withdrawn and discontinued (announced 14 September 2026)
- Pre-development works completed, including upgrades to the main access road, internal mine roads, and camp access roads, along with preparation of stockpile and brownfield areas
- The Government and local Chiefs have confirmed Globe is permitted to access compensated land during the three-month PAP relocation period
- Initial pit opening, mining, and stockpiling targeted in coming weeks
The three-month PAP relocation window runs in parallel with development activity. Mining does not wait for relocation to conclude.
What is a Project Affected Person (PAP) resettlement process?
When a mining project is developed on land where communities live and farm, international best-practice standards require the company to assess, fairly compensate, and support the relocation of affected households before ground disturbance begins. The IFC Performance Standards on Environmental and Social Sustainability are the globally recognised benchmark for this process.
For investors, completing this process matters on multiple levels. It removes a major social and legal risk, satisfies the requirements of international lenders and project financiers, and is typically a prerequisite for full-scale construction activity. A clean resettlement record also protects the project’s social licence to operate going forward.
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Funding secured to carry Kanyika through to mining commencement
The compensation programme has been funded through a working capital facility provided by Director Bo Tan. The facility was originally announced on 4 August 2026 at US$600,000. It has since been varied, with the total facility amount increased to US$1.6 million, the repayment date extended to 30 June 2027, and the interest rate increased from 12% to 16.5% per annum. The facility remains unsecured.
An insider increasing his financial commitment at this stage of the project signals confidence in the near-term path ahead.
Charles Altshuler, Interim CEO & CFO
“I would also like to thank Director Bo Tan for his continued support. The increase in his working capital facility from US$600,000 to US$1.6 million provides the funding required for the Phase 1 compensation payments and is helping us progress Kanyika towards the commencement of mining activities.”
With compensation payments complete, legal proceedings resolved, and access to compensated land confirmed, Globe is now focused on the next near-term milestone: initial pit opening and stockpiling. A further shareholder update is expected to follow.
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