Proactive Investors - Sovereign Metals Ltd (LON:SVML) has welcomed the start of upgrades to the 399-kilometre section of railway that traverses its Kasiya Rutile-Graphite tenements from Mchinji at the Malawi-Zambia border to Nkaya Junction.
Vital port connection
The track connects the project to the Nacala Logistics Corridor and to Nacala port and is part of the Malawi Government’s Rail Strategy and Growth Plan, aimed at enhancing the country’s rail infrastructure as part of a broader initiative to promote socio-economic development.
Nacala Logistics Corridor with section being upgraded in orange.
The Rail Strategy and Growth Plan aims to create a safe, efficient and sustainable rail transport system.
Critically for Sovereign Metals, this strategic route provides a vital export channel through the deepwater port of Nacala for Sovereign’s rutile and graphite products.
The Central and Eastern African Railway Company (CEAR) is overseeing the refurbishment project, which is expected to be ready by the end of the year.
This upgrade will include refurbishing rail bridges and re-ballasting along the section through Kasiya to increase the maximum axle load from 15 tonnes to 18 tonnes.
The improvement works that cut through the Kasiya Project area, extending from the Lilongwe District southward to the Nacala Logistics Corridor, are nearing completion.
Preferred export route
The Nacala Logistics Corridor is the preferred logistics route for exporting Sovereign’s products to global markets while the Sena Rail Line to the Port of Beira provides a secondary export route.
Port of Nacala, Mozambique.
Managing director Frank Eagar said: “Kasiya already benefits from exceptional existing infrastructure in central Malawi.
“This refurbishment project re-affirms Kasiya’s logistics solution with sufficient rail capacity, enhanced reliability and a direct connection to the deepwater export port of Nacala.
“The infrastructure investment by CEAR and Nacala Logistics along with approvals from the Malawi Government is a demonstration of the country’s commitment to achieving its major economic development goals which include developing the mining industry and increasing Malawi’s export market.”
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