FOR IMMEDIATE RELEASE
AUGUST 1, 2025
SOVEREIGN SERVICES DELIVERS ON COMMITTMENT TO FAIR COMPENSATION FOR KASIYA FARMERS
LILONGWE, MALAWI – Sovereign Services has successfully completed the first year of a two-year pilot mining and soil rehabilitation test programme at its Kasiya Rutile and Graphite Project.
This test programme and its outcomes are an important milestone in the company’s progress to determine the economic and technical feasibility of the project and its future implementation timelines.
The farmers near Kasiya who are directly impacted and disturbed by the pilot mining and soil rehabilitation test programme have received benefits in-kind and in monetary form equalling an average of four times their annual household income in return for allowing the company to use their land during this two-year test period.
The amounts, which has been fully paid to the 35 affected households, are considerably more than the amount they would have earned from their usual crop cultivation, if Sovereign had not undertaken the test programme. The disturbance allowances paid are in addition to the significant in-kind benefits received in the form of agricultural input loans, training, mentorship and financial literacy support. In addition to this, farmers were employed as part of the test programme in support of the company’s feasibility studies. All disturbance compensation amounts were calculated by valuers from Ministry of Lands based on full replacement value of potential losses, and disbursed with the approval and agreement from the relevant government ministries.
Importantly, all farmers were able to harvest their 2024 crops, so incurred no actual crop losses, and no single farmer lost a planting season since all disturbed land was rehabilitated prior to the 2025 planting season. Farmers were able to harvest their crops during May 2025 and achieved yield increases of five times the harvests in the previous year. No farmer or household was left without the means to support their livelihoods.
The disturbance payments are for the potential losses and disturbance associated with temporary use of land over the two-year test period. The same affected farmers and households will participate in the second year of the rehabilitation test programme, which is expected to conclude in June 2026. This second year will not involve any excavation or soil disturbance activities, only planting of maize, monitoring and harvesting under the guidance of the company’s agricultural experts. Fully rehabilitated and restored land will be returned to the affected farmers at the end of the test programme.
Test results from this programme will inform the design and implementation of the Kasiya project.
“Based on the average yield and land area impacted (3,000m² per household), the potential lost value of crops on this area would have been approximately US$200 per household at conventional yields. Considering the average annual household income in the Kasiya area is around US$600, the benefits received by the farmers are substantial, equivalent in value to about four times their total annual household income. The relationship with the landowners is positive, through continued communication during the process to ensure the farmers fully understand and have input into the decisions that affect them” said Sovereign Services Social Performance Manager Garth Lappeman.
“We are deeply committed to transparency, accountability, and building long-term partnerships with communities. Our goal is to ensure that local communities benefit meaningfully from the Kasiya project; the total value of cash and in-kind benefits provided to affected households far exceeds any potential losses, reflecting our commitment to good social practice and sustainable community development,” he added.
In addition to direct payments, Sovereign Services has implemented a comprehensive package of livelihood-enhancing initiatives that continue to enhance the company’s strong relations with local communities. These include conservation farming programmes on land not affected by the test program to boost crop yields; a vulnerable household vegetable project that supports nutrition and income diversification; precautionary food support for vulnerable households, and local hiring opportunities for exploration and rehabilitation activities. By providing these multifaceted benefits, Sovereign is demonstrating its commitment to supporting the well-being and economic resilience of local communities.
These efforts have produced tangible results, with farmers successfully harvesting their land in 2024 and 2025. The 2025 harvest significantly exceeded conventional yields, thanks to the company’s technical support and conservation farming training. More importantly, compensation for crop losses was calculated at 2.2 tonnes per hectare, exceeding the actual average conventional yield of approximately 1.3 tonnes per hectare. This generous calculation provided a substantial financial cushion for all affected farmers and ensures that no farmers are under-compensated for potential losses, considering of course that no potential losses were realised and so these payments were in excess of full improved harvests.
“As the Kasiya project advances, our focus remains on ensuring that development is inclusive, sustainable, and aligned with the aspirations of the people of Malawi,” Mr Lappeman stated.
The Kasiya project, one of the world’s largest undeveloped natural rutile and graphite deposits, is progressing steadily towards development, with community engagement and environmental stewardship at its forefront. It is in an exploration and study phase, and no mining or selling of minerals has yet taken place.
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About Sovereign Services
Sovereign Services is the Malawi operation of Sovereign Metals Limited, which is focused on developing its Kasiya Rutile-Graphite Project in Malawi to become a leading global supplier to the titanium and graphite industries.
Kasiya is the world’s largest natural rutile deposit – the purest, highest-grade naturally occurring titanium feedstock – and the world’s second-largest flake graphite deposit – a battery mineral essential for the energy transition.
www.sovereignmetals.com.au
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