Globe Metals: fluorspar market showing signs of recovery

Feb. 22, 2010
Africa-focused Globe Metals & Mining said that the fluorspar market was showing signs of recovery, in time for the company to make a decision on how to proceed with its 90% interest in the Mount Muame fluorspar project, in Mozambique.
Globe executive chairperson Mark Sumich said that there were several positive signs for the fluorspar market and price outlook at present, not the least of which was the ever-increasing role of China in relation to both production and consumption.
"As with other commodities, such as rare earths, China's focus is always its domestic market, and its policies can have a dramatic effect on prices globally due to its market shares," said Sumich.
He noted that Globe was currently well positioned with its Mount Muambe project, which indicated high indicative grades, compared with operating fluorspar mines.
"With relatively little expenditure, we should be able to come to a quick assessment of economic potential, through our drill programme to be carried out in the second quarter of 2010."
Sumich added that should Globe be successful with its drill programme, the company would make an assessment as to how to proceed and fund the further exploration and development of the project.
"Already the company has received enquiries as to our intentions for the project from other industry participants, but it makes no sense to contemplate a transaction prior to completion of the drill programme."
Globe, which acquired the stake in Mount Muambe last year, said it had started planning for construction of an access road, and all permits, including environmental, which would be submitted to the appropriate authorities as required.
It is expected road construction would begin immediately after the wet season in late March.
But Sumich noted that Globe's main focus remained on advancing the bankable feasibility study for the Kanyika niobium project, also in Mozambique, and bringing this into production as soon as possible.
The company is targeting production of 3,000t/y of niobium metal, with output expected to start in 2012.
In neighbouring South Africa, Sephaku Holdings is also studying the development of a new fluorspar mine. The company hopes to produce 130 000 t/y of acid-grade fluorspar by the second quarter of 2012.