Sovereign Metals' Kasiya Rehabilitation Trials Deliver Fivefold Crop Yield Gains, Advancing DFS & IFC Bankability Milestones

• The second year of rehabilitation trials at the Kasiya Rutile-Graphite Project in Malawi is nearing completion, with crop yields expected to match the first-year benchmark of 5.2 tonnes per hectare at harvest in mid-2026.
• First-year trials confirmed that rehabilitated post-mining land can achieve superior agricultural output compared to pre-mining land, with maize yields of 5.2 tonnes per hectare, compared to a regional average of 1 tonne per hectare.
• The second year of trials has expanded into a diversified multi-cropping system combining maize, Giant Bamboo (Dendrocalamus asper), winter beans, grass fodder, and groundnuts, broadening the range of food, cash, and fodder crops available to participating communities.
• All 28 local farmers involved in the programme have formally requested that Sovereign remain at the trial site and assist in establishing a farming co-operative, which forms a central element of the Kasiya post-closure social transition strategy.
• Empirical data from the trials have been incorporated into the Mine Closure and Rehabilitation Plans in the Definitive Feasibility Study (DFS) and the Environmental and Social Impact Assessment (ESIA), thereby strengthening the project's alignment with International Finance Corporation (IFC) performance standards.

Sovereign Metals [ASX:SVM; AIM:SVML; OTCQX:SVMLF] is an Australian minerals company advancing the Kasiya Rutile-Graphite Project in Malawi. The project's Definitive Feasibility Study (DFS) is being completed under the oversight of the Sovereign-Rio Tinto Technical Committee, with the International Finance Corporation (IFC), a member of the World Bank Group, supporting integration of its Performance Standards into the DFS and Environmental and Social Impact Assessment (ESIA).

Rehabilitation Results

The second year of pilot mining and rehabilitation trials at Kasiya is nearing completion ahead of the upcoming harvest season in Malawi. Results from the first year established a measurable baseline: maize yields of 5.2 tonnes per hectare, compared with a regional average of 1 tonne per hectare. This fivefold increase confirmed that post-mining land can achieve superior agricultural productivity compared to pre-mining conditions. Pre-mining agricultural land in the region loses crop carrying capacity at 3 to 4% per annum, a trajectory the rehabilitation method is designed to reverse.

The programme applies lime, fertiliser, and biochar during the first year of rehabilitation, with targeted supplementation in the second year where specific nutrient deficiencies are identified. All activities are conducted under a no-tillage, minimal soil disturbance principle, with no heavy machinery permitted on rehabilitated soils. All work is undertaken by hand to preserve soil structure and the effectiveness of applied ameliorants. The approach is designed to be replicable by local farming communities beyond mine closure.

The multi-year empirical outcomes are being used to prepare the Mine Closure and Mine Rehabilitation Plans, which are now integrated into the DFS and the ESIA. 

Managing Director and Chief Executive Officer of Sovereign Metals, Frank Eagar, puts it this way:

"Sovereign's primary objective is to deliver sustainable returns for all stakeholders, including shareholders and local communities. Not only will the overwhelming success and empirical data collected through this pilot mining and rehabilitation trial underpin the DFS accuracy, but it also demonstrates that land post mining can be successfully rehabilitated and our ability to improve agricultural productivity. The 5-fold increase in maize yields will enable unprecedented and immediate secondary economic benefits. The emerging co-operative model is a practical example of our commitment in action – transforming mined land into more productive farmland while equipping local communities with the skills and infrastructure to thrive independently."

Diversified Cropping System

The second year of trials has extended the rehabilitation approach beyond the single-crop system established in year one. The programme now operates a diversified multi-cropping model combining maize with Giant Bamboo (Dendrocalamus asper), winter beans, grass fodder, and groundnuts. First-year results confirmed that bamboo and maize co-exist with minimal competition, functioning in a manner that supports long-term land productivity. The bamboo component serves a parallel role as a long-term carbon and soil remediation solution as it matures.

The expanded crop mix provides participating communities with a broader range of food, cash, and fodder crops, supporting year-round agricultural viability. The programme is designed to support a transition from subsistence to commercial farming on rehabilitated land, and the introduction of multiple crop types reflects that progression. Second-year yields are expected to reach the 5.2 tonnes per hectare benchmark when harvested in mid-2026.

Community Partnerships

After two years of close collaboration, the 28 local farmers participating in the programme have formally requested that Sovereign remain involved at the trial site and provide support in establishing a farming co-operative. The request reflects the programme's demonstrated value to the local communities.

The development of community-led farming co-operatives forms a stated pillar of Sovereign's post-closure social transition strategy for Kasiya. The model is designed to ensure that improved farming practices and agricultural productivity are sustained and built upon by local communities well beyond mine closure, without ongoing reliance on external support. Sovereign intends to continue working with local farmers throughout 2026 to establish a replicable framework that can be scaled across the broader Kasiya project area as mining progresses.

DFS Integration & IFC Alignment

The empirical data from two full seasons of rehabilitation trials have been applied directly to the Mine Closure and Mine Rehabilitation Plans, which are now integrated into the DFS and ESIA. Grounding these plans in multi-year field data directly addresses a material requirement of development finance institutions assessing project bankability.

The outcomes also complement Sovereign's recently announced collaboration with the IFC, which is supporting integration of its Performance Standards into the project's DFS and ESIA. Multi-year field evidence of rehabilitation outcomes aligned with those standards provides a concrete empirical basis for that collaboration and strengthens the project's pathway to international project financing.

Next Steps

Sovereign plans to continue its work with local farmers throughout 2026 to develop the farming co-operative model, with a view to establishing a framework replicable across the broader Kasiya project area. Second-year crop yields are scheduled for harvest in mid-2026 and are expected to confirm the benchmark of 5.2 tonnes per hectare established in the first year of trials.

The Mine Closure and Rehabilitation Plans, now grounded in empirical field data from two full seasons, are incorporated into the DFS, which continues to progress under the oversight of the Sovereign-Rio Tinto Technical Committee. Completion of the DFS and ESIA, progressing under the oversight of the Sovereign-Rio Tinto Technical Committee and supported by IFC collaboration, is the key project deliverable for the period ahead.

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