Malawi+Strategic+Minerals

=East China Mineral Exploration and Development Bureau investment in Globe Metals and Mining Likely to Bring More Investments in Strategic Minerals to Malawi=

Executive Summary:
It is likely that Malawi will continue to see Chinese investments in strategic minerals over the next five years. Recently Globe Metals and Mining entered into an agreement to form a partnership with East China Mineral Exploration and Development Bureau (ECE). ECE invested USD 40.7 million to gain a 51 percent stake in Globe Metals and Mining. The Kanyika Niobium Project in central Malawi focus is in producing niobium pentoxide and tantalum pentoxide powders. Although Chinese investments in Malawi have been limited to mainly infrastructure projects, the recent investment by the ECE in the Kanyika Niobium Project will allow for the proper funding of exploration, production and help the demand for minerals within the country. China accounts for around 35 percent of ferro niobium consumption which is used in steel industries.

Analytic Confidence:
Analytic confidence for this assessment is medium. Source reliability ranges from medium to high. There is no conflict between sources. The analyst had low expertise, worked alone, and did not use structured analytic methods. The subject is moderately complex and the deadline was easy to meet.

Analyst:
Sean Dailey sdaile35@lakers.mercyhurst.edu