By Our Reporter

Copyright mwnation

The Government of Japan has launched a new Nacala Corridor development initiative worth $7 billion (about K12 trillion) to strengthen critical mineral supply chains from Malawi, Zambia and Mozambique.

For Malawi, the initiative targets rutile from Kasiya as the lowest-cost to international markets via a deep-water port.

The development was born from the 9th Tokyo International Conference on African Development held in Yokohama, Japan from 20-22 August, bringing together African leaders and international partners to discuss development cooperation.

In an announcement yesterday, Sovereign Metals, which is developing the Kasiya Mine, said Japan has committed $7 billion (about K12 trillion) which includes $5.5 billion (K9.4 trillion) in development funding through a joint programme with the African Development Bank.

The remaining $1.5 billion (about K2.6 trillion) will be in the form of public-private impact investment through Japan’s development agency.

In June, Japan’s Toho Titanium Company Limited confirmed that natural rutile from Kasiya meets specifications for high-performance titanium metal production, establishing market credentials that align with Japan’s priority of securing critical minerals supply chains through the corridor.

During the Yokohama conference, Japanese Prime Minister Shigeru Ishiba said the initiative will, among others, strengthen connectivity within the region and enhance the value of the corridor as a transportation route for mineral resources and other goods.

He said this will help to achieve sustainable development through promoting investment and creating employment in the region.

Said Ishiba: “We will launch a new region-wide co-creation for common agenda initiative that promotes logistics in the Nacala Corridor, which contributes to strengthening mineral resource supply.”

On his part, Sovereign Metals chief executive officer Frank Eagar said Japan’s commitment to the Nacala Corridor infrastructure validates the company’s strategic positioning and creates powerful opportunities for Kasiya’s development.

During the commissioning of Kayelekera Uranium Mine in Karonga last month, Minister of Mining Ken Zikhale Ng’oma said government has put in place safeguards to tame leakage of resources.

Mining, which is part of the agriculture, tourism, mining and manufacturing (ATMM) strategy, is touted as a sector that can help to grow the economy in the short-to-medium-term.

Meanwhile, the sector contributes about one percent to the country’s economy.