Sovereign Metals has confirmed that Rio Tinto will not exercise its right to elect as operator of the Kasiya Rutile-Graphite Project in Malawi, ending a collaboration that saw Rio invest more than A$60 million in the asset since 2023.
Rio Tinto attributed the decision to a strategic review of its Iron and Titanium business, consistent with its publicly stated narrowing of portfolio focus to iron ore, copper, aluminium and lithium.
With Rio's departure, two significant rights under the Investment Agreement have lapsed: exclusive marketing rights over 40% of annual production across all products, and a pre-emption right over any third-party offer to acquire a project interest.
Sovereign, an ASX and AIM-listed critical minerals developer, now holds full commercial control of Kasiya, which hosts titanium via natural rutile, natural graphite and a heavy rare earth concentrate by-product, each designated critical by the US government.
The company intends to convert existing non-binding offtake memoranda of understanding with Mitsui and Traxys North America into binding agreements, while deepening engagement with U.S. government stakeholders on the rare earth co-product opportunity.
"Rio Tinto has invested over A$60 million in the project and has provided valuable technical input," chairman Ben Stoikovich said, noting that Rio's participation contributed to the definitive feasibility study completed earlier this year.
