Rio Tinto will not take over operations of Sovereign Metals’ Kasiya project in Malawi, ending a partnership that helped advance one of the world’s largest undeveloped natural rutile and graphite deposits.

The mining company said the decision is part of a broader review of its business as it sharpens its focus on iron ore, copper, aluminum and lithium. It said the move is not linked to the quality or economic potential of the Kasiya project.

For Sovereign Metals, the decision clears the way to move the project forward on its own while seeking new financing and supply agreements.

The company believes demand for critical minerals outside China will continue to grow as governments strengthen supply chains.

Rio Tinto will remain one of Sovereign’s largest shareholders, keeping an 18.2% stake and its right to appoint a director while its holding remains above the agreed threshold.

Sovereign takes full control of Kasiya

Rio Tinto’s decision brings an end to rights granted under the investment agreement, including operatorship, product marketing and certain pre-emption rights.

Sovereign said it can now manage financing and commercial negotiations independently.

The company plans to deepen talks with U.S. government agencies, development finance institutions and industry partners.

It also aims to turn existing non-binding agreements with Mitsui & Co. and Traxys North America into long-term supply contracts, subject to negotiations.

Project backed by strong technical progress

Sovereign Chairman Ben Stoikovich thanked Rio Tinto for its support, saying the miner invested more than A$60 million in the project since 2023 and provided technical expertise that helped complete pilot mining work and the project’s definitive feasibility study.

Sovereign Metals is developing the Kasiya project in central Malawi, which is regarded as one of the world’s largest natural rutile deposits and a major natural graphite resource.

The project is expected to supply minerals used in pigments, aerospace manufacturing, batteries and electric vehicles, helping meet growing demand for secure sources of critical minerals.

Stoikovich said the company is well placed to build on that work as it advances Kasiya with a stronger focus on supplying the United States and allied markets with natural rutile and graphite from outside China.