Canada-based Neo Performance Materials has entered a non-binding memorandum of understanding (MOU) with Globe Metals & Mining for the purchase of up to 150 tonnes per year of niobium pentoxide from the Kanyika Niobium Project’s first phase in Malawi. This agreement sets the stage for a formal commercial offtake deal, securing a reliable supply for Neo’s rare metals facility, NPM Silmet, in Sillamäe, Estonia. Production at the Kanyika Project is slated to begin in the first quarter of 2027.

The Kanyika project is scheduled to commence production in Q1 2027.

Globe Metals & Mining, an African-focused resources firm, views this as a significant step forward. CEO Paul Smith stated: “The Neo MOU represents a watershed moment for the Kanyika Project. It means Globe has now signed multiple MOUs and a letter of intent that, as a package, cover offtake for 100% of Kanyika’s Phase 1 production of both niobium pentoxide and tantalum pentoxide. We look forward to a long and lasting relationship with Neo and are very pleased to be associated with such a highly regarded group, which enjoys a pre-eminent position in the global market for strategic and critical metals.” The agreement is expected to renew annually after initial quantities are fulfilled.

Beyond niobium pentoxide, Neo has gained a limited right of first refusal for other critical metals from the project, such as tantalum and zircon concentrates. Neo’s CEO Rahim Suleman said: “We are laser-focused on diversifying and de-risking our supply chain, including our long-term access to critical metals, and expanding into increasingly more downstream value-added applications across all our business lines, including niobium and tantalum. The feedstock agreement with Globe provides an opportunity to engage in multi-year planning to optimise Neo’s supply chain.” This move strengthens Neo’s position in the global market.

Last month, Globe Metals & Mining also signed a non-binding MOU with Myst Trading for offtake from the same phase of the Kanyika Project. Together, these agreements ensure full coverage of the project’s initial output. Located in Malawi, the Kanyika Niobium Project is poised to become a key supplier of critical metals, supporting industries reliant on these materials.

The partnership reflects a strategic alignment between Neo and Globe, enhancing supply chain stability and fostering growth in the critical metals sector. With production set for early 2027, the collaboration promises long-term benefits for both companies and their stakeholders.