Mining & Trade News

ASX-listed Chilwa Minerals has announced the signing of an agreement with ASX-listed Lindian Resources to prepare monazite drill samples from Kangankunde Rare Earth Prospect at the latter’s Sample Preparation Laboratory in Zalewa.

 The agreement enables material from Lindian’s grade control drilling program at the Kangankunde Rare Earth Project to be processed locally before export for assaying, supporting the projects progress towards production.

Under the arrangement, samples from the Kangankunde project are being prepared at Chilwa’s purpose-built laboratory, which was officially opened by Malawi’s Minister responsible for Mining in November 2024. Grade control drilling is a critical component of mine planning and is expected to support Lindian’s effort as it moves closer to commencing mining operations at Kangankunde in November this year.

 Lindian Executive Chairman Robert Martin commented “Our technical team recently visited the Chilwa laboratory at Zalewa and were impressed with the setup and standards of the operations. It is a well-run, professional facility that meets the standards we require for our grade control sample preparation. Using this facility will expedite our grade control assessment as we move to mining operations at Kangankunde. This is an example of the collective collaboration between emerging mining companies within the Malawian mining community, we would like to thank Cadell Buss and his team at Chilwa Minerals for making capacity available for our requirements.”

Chilwa Minerals’ Managing Director Buss also commented “We were more than happy to oblige the Lindian team. Kangankunde is a world-class asset and the sooner they are in operation, the better it is for other explorers and the broader mining sector in Malawi. Having a project of this caliber progressing towards production is tremendously positive for the country’s critical minerals industry.”

Buss said whilst the income from this arrangement is not material to Chilwa, the Company is very pleased to be assisting Lindian with this request, which independently confirms the technical capabilities of Chilwa’s in country team and facilities.

Despite the ban on the export of raw minerals that was declared by State President Professor Arthur Peter Mutharika, former Director General of the Malawi Mining and Minerals Regulatory Authority Samuel Sakhuta authorized Lindian to export monazite concentrates from Kangankunde, which is one of the largest rare earth deposits in the world with global significance.

I woke up that Thursday cloudy morning of June feeling the torment of cold weather. As per daily routine, my first task was to drop my last-born son Kondwani at Haven Primary School in Falls Township. The distance from my Chilinde home in Lilongwe to the school and proceed to office in nearby Biwi Township is short but appeared too long due to the low fuel levels in the tank of my car. I had last refuelled three days ago in Biwi Triangle, the five litres of petrol bought from the black-market fuel vendors at an inflated price of K65,000 due to the prevailing fuel shortage attributed to ferex shortage.

Lucky enough, I was able to drop Kondwani at Haven and drive safely to the office while my fuel gauge was stuck at the word Empty with the Danger Warning Light on signalling that the engine can switch off at any time due to a dry tank.

I was just settling in my office compiling my work list for the day when three visitors came in. It was my brother Alex with some two friends, all the three smart gentlemen clad in blue suits and neckties, the colour of Democratic Progressive Party (DPP). “Oh, Alex long time! You are very much welcome.” I left my desk to greet the three before ushering them to the visitors’ chair.

It was a surprise for me to see Alex Chimwala, a brother I had not met for over five years. In fact, I had last met him at the funeral of my Uncle, Enock Ching’amba, in Machinjiri, Blantyre. Alex is a politician who contested as an Independent Parliamentary candidate in the 2025 elections in Blantyre South Lunzu Constituency but failed to make it to Parliament. I always avoid his company because he mainly discusses politics which I resent because I consider it a dirty game. He introduced his friends; one a tall dark plump guy as David and a short guy light in complexion in dark glasses as Solomon.

“You mining reporter, Alex told me politics is in play at this Kangankunde Mine in your father’s home district, Balaka,” Solomon directed the talk to me.

I explained to the three gentlemen that there is no any politics at Kangankunde. The developer of the mine, Lindian Resources, is a professional company listed on Australian Stock Exchange which demands good practices from listed companies with principles of sustainability at the core of development.

“What about the visit of Honourable Bright Msaka, the Minister of Education, to open school blocks constructed by Lindian at a primary school, was that not politics? I hear the Minister hailed Lindian saying “Adadi ayimanso (the State President will contest again in coming elections) because he is promoting mining which has seen Lindian constructing the blocks,” Solomon again posed the question.

I told the three gentlemen that Honourable Msaka only went to the school with his deputy and entourage from Ministry of Education to officially open Lindian’s Project Early Learning which involves construction of new blocks at Kangankunde Primary School.

“In your thinking, you appear to be a kid, Mr Writer. Where was the Minister of Energy and Mining and her team that time?”

I told Solomon and his team that I do not know but I think the Minister responsible for Mining and team could have missed the function due to their busy schedules.

“That aside, why did His Excellency Professor Arthur Peter Mutharika remove our technocrat Mr Samuel Sakhuta from the position of Director General of Mining and Minerals Regulatory Authority. Is that not connected to the Kangankunde Mine?”

I told him I do not know of any connection between Kangankunde Mine and the dismissal of the Director General of the Authority. What I think is that the President just moved the seasoned geologist Mr Sakhuta to assign him other befitting roles to maximise benefits for the country from his services.

But Solomon responded: “You are indeed a toddler Mr Writer. Mr Sakhuta was dismissed after he wrote a letter giving greenlight to Lindian Resources to export monazite concentrate to its downstream processing facility in Kazakhstan despite the Presidential ban on exportation of raw minerals with its regulations not gazetted yet. In the political circles, we believe he was still dancing to the tunes of Malawi Congress Party (MCP) because of such actions.”

“In his later responding to Lindian who was seeking clearance to start exporting the monazite for tests, Mr Sakhuta said the Executive Order excludes monazite from Kangankunde because Lindian will be sending concentrates, which is processed material yet this is only an immediate stage in the processing cycle.” He shared the letter to me through Whatsapp. We have published the letter in this column, and this is the same letter that Lindian used to fundraise from investors for its projects at Kangankunde and Kazakhstan where it has purchased a refinery.

“So now toddler, do you still think that there is no politics in mining? Then, why is Mr Sakhuta’s immediate boss in the Chakwera administration, the then Principal Secretary responsible for Regulation Activities, Mr Martin Kaluluma Phiri, now at Lindian as Head of the company’s Malawi operations?”

I told him that I just know Mr Kaluluma Phiri as a professional who is with Lindian due to his credentials.

“Is he a geologist or Mining Engineer?”  Solomon questioned.

Before I could answer David chimed in: : “Tell all the opposition sympathisers to get to get their hands off this mineral treasure at Kangankunde. This is a national asset not party property!” It is when I realised that David is a typical DPP zealot. His voice was just deep, alarming and appeared forceful in his tone.

I told him I do not want anything to do with politics, it will just smear my name and reputation as politics is a dirty game. This is the reason I refrain from meeting my brother Alex.

It was at this point that I had an opportunity to explain to the three politicians that it is necessary for all politicians not to meddle with mining projects. I narrated to them the ordeal of an investor in Lindian Resources based in Australia. Here is a man, who lost his right leg in a work accident. He invested his compensation in Kangankunde through Lindian hoping that his children and grandchildren will benefit from proceeds from this multigenerational deposit whose mine life is pegged at over 100 years.

This only invited the wrath of Alex: “Think of your son, Kondwani not those rich people in Australia! Will Kondwani and fellow kids of his generation in Malawi be able to find mining jobs when companies like Lindian continue to source rawer minerals in Malawi for downstream processing in European countries? Adad APM (referring to the State President) has a vision. This is why he issued the Executive Order banning raw mineral exports.”

At that point, I realised the time was running out for me to seek black market fuel and pick Kandwani from school. I told the guys to excuse me to look for fuel but it was David who came to my rescue. “I will give you five litres, my brother.” He opened the boot of his car, which the three men used in their trip from Blantyre, to produce a 5-litres gallon and a flexible pipe he used to drain petrol from his car into the galloon that was emptied into my vehicle.

That day David saved me from the pain of fuel scarcity as David of the Bible saved the Israelites from the wrath of Goliath and the Philistines. But as I arrived at Haven Primary School to meet the ever smiling Kondwani, I envisioned what I shared with the visitors and what the President could have had in mind when declaring the ban on raw minerals; a new Malawi, a haven where there is enough forex and no fuel scarcity because of better governance of mining projects such as Kangakunde. A Haven that will host Kondwani Chimwala as a University graduate able to find a job in metallurgy with companies conducting beneficiation of minerals locally!  

The Malawi Extractives Industry Transparency Initiative (MWEITI) says it is important for the Mines and Minerals Regulatory Authority (MMRA) to include it in the development of the Authority’s audit charter.

MMRA is developing an Audit Charter aimed at strengthening transparency, accountability and good governance in Malawi’s mining sector. The initiative which is receiving technical support from the Department of Internal Audit and Department of Mining, forms part of wider reforms intended to improve oversight  and ensure that the country’s mineral resources generate maximum national benefits.

Desk Officer at MWEITI Secretariat Leonard Mushani explains in an interview that it is necessary for the MMRA to include MWEITI in the Charter’s development process since it possesses technical expertise that can contribute significantly to the initiative due to its role in promoting transparency and managing reporting systems within the extractive sector.

“MWEITI and EITI have working relationships with supreme Audit Institutions and have conducted various trainings in the past,”Mushani says.

Mushani notes that the annual EITI process itself involves reconciliation of mining revenues and audit related work involving institutions such as MMRA itself, Malawi Revenue Authority (MRA), Department of Forestry, Technical Entrepreneurial and Vocational Education and Training Authority and Export Development Fund.

“National Audit Office is a key player in the EITI process and MWEITI provides support for auditors to review templates from institutions involved in mining revenue reporting,” Mushani says.

Mushani argues that excluding MWEITI from the process risks overlooking valuable expertise and may affect the effectiveness of the final product.

“These are common mistakes when developing programmes because institutions with relevant technical knowledge may not be involved from the beginning,” Mushani says.

The Audit Charter will, among other things; establish the mandate and independence of the internal audit unit of the Authority; define the audit scope, covering financial, operational and compliance reviews; strengthen risk management and internal controls and promote ethical standards and accountability across the mining sector. The Charter is expected to be finalized by June this year  and will serve as a guiding document for internal audit activities within MMRA.

Natural Resources Justice Network (NRJN) programs coordinator Joy Chabwera describes the development of the Audit Charter as an important step that aligns with principles of transparency and accountability.

Chabwera says a strong audit system can improve confidence in the mining sector by ensuring that revenues, contracts and compliance systems are managed openly.

“By clearly spelling out roles, independence and scope of internal audit functions, the Charter strengthens oversight of mining revenues, contracts and compliance. This directly supports the objectives of EITI because EITI depends on reliable data and transparent systems,” says Chabwera.

Drawing lessons from other countries, Chabwera points to Zambia and Ghana, where stronger audit systems support transparency initiatives in the extractives sector. In Zambia, independent audit frameworks under the Extractives Industries Transparency Initiative improve contract disclosure and reduce discrepancies in royalty payments. In Ghana, audit findings are integrated into reconciliation reports, helping increase public trust and accountability.

Chabwera also recommends that the Charter should guarantee independence of auditors, widen the audit scope to include financial and environmental issues, and link findings directly to EITI reporting systems.

As Malawi seeks to strengthen governance in the mining sector, stakeholders now look closely at whether the development of the Audit Charter includes all critical actors needed to ensure transparency and accountability.

Civil Society groups working in Malawi’s mineral sector under the umbrella of the Natural Resources Justice Network (NRJN) say there is need for the Malawi Government to initiate independent investigations and baseline radiation assessment studies around the Kangankunde project area in Balaka before full-scale operations commence.

Australian-listed Lindian Resources is preparing to start monazite mining at Kangankunde in the fourth quarter of this year, and is currently finalizing the construction of the mine and relevant infrastructure.

But Coordinator for Natural Resources Justice Network (NRJN) Kennedy Rashid says in an interview that NRJN has reviewed the Kangankunde Rare Earths Project Feasibility Study released by Lindian Resources in July 2024 but while the report presents the project as economically attractive and describes the radioactive content as “low,” NRJN believes the issue of radioactivity requires deeper public scrutiny, independent scientific verification, and stronger regulatory oversight by the Government of Malawi.

Rshid says: “The feasibility study confirms the presence of thorium and uranium within the Kangankunde ore body and concentrates. The company indicates estimated thorium concentrations of approximately 50ppm and uranium concentrations between 5ppm and 6ppm, while also stating that the product is classified as non-radioactive for transport purposes.   However, NRJN maintains that transport classification alone should not be treated as sufficient assurance regarding long-term environmental and public health safety.”

“Rare earth mining globally has demonstrated that even relatively low concentrations of naturally occurring radioactive materials can become significant over time through accumulation in tailings storage facilities, dust emissions, wastewater discharge, occupational exposure, and long-term waste handling. The Kangankunde project is projected to operate for approximately 45 years, with large-scale extraction, processing, tailings generation, and concentrate transportation planned over decades.”

NRJN, therefore, believes there is a compelling public interest justification for the Government of Malawi to initiate independent investigations and baseline radiation assessments around the Kangankunde project area before full-scale operations commence. These investigations should not rely exclusively on company-generated data, but should involve independent scientists, environmental regulators, health experts, universities, civil society organisations, and where necessary, international radiation safety institutions.”

He explains that particular attention should be given to: Long-term radiation exposure risks for surrounding communities and mine workers; Safety and management of tailings storage facilities over the lifespan of the mine; Potential contamination of groundwater, rivers, agricultural land, and food systems; Airborne radioactive dust risks during mining, transportation, and processing; Institutional preparedness and monitoring capacity of Malawi’s regulatory agencies; and Emergency response systems and long-term mine closure liabilities.

NRJN also notes that while the company states that an Environmental and Social Impact Assessment (ESIA) was approved by the Malawi Government, transparency around radiation-specific studies, public disclosure of baseline data, and independent peer review remains limited in the public domain.  

“Communities and the general public deserve access to understandable and independently verified information regarding potential environmental and health implications associated with the project,” says Rashid.

But NRJN cautions against unnecessary panic or misinformation saying the existence of thorium does not automatically mean there is immediate danger to communities.

“However, responsible governance requires precaution, transparency, scientific independence, and continuous monitoring, especially in strategic mineral projects associated with rare earth extraction,” says Rashid.

He says as Malawi positions itself within the global critical minerals and energy transition economy, NRJN believes the country must avoid repeating mistakes observed in other mining jurisdictions where environmental and health concerns were addressed only after serious damage had already occurred.

“Economic benefits should never come at the expense of public health, environmental integrity, and community safety.”

“NRJN therefore calls upon the Government of Malawi to establish an independent and transparent radiation monitoring and oversight framework for rare earth mining projects, including Kangankunde, to ensure that mining development proceeds in a manner that protects both present and future generations.”

Lindian is, currently, finalizing construction of the mine and relevant infrastructure at Kangankunde, with concentrate planned to be exported to Kazakhstan for downstream  processing.

It was in the wee hours of a Saturday when one enjoys a good sleep after a busy week when I was awakened by a strange call. It was a call from quite an unfamiliar number and it startled me that It was coming in such an odd hour:  “Bwana Chimwala!” That was the voice from the other end.  “Yes sir,” I responded with a lousy deep voice as I was half asleep.

“I am calling from Kayelekera Mine. I am one of the employees at the mine. Sorry to disturb your sleep. I want to explain to you what is happening here.”

“It is okay Sir. I am already awake, Go ahead.” I responded shedding off the sleep mood in a flash after hearing that the caller wanted to tell me a story involving my duties as a journalist.

What followed was his ordeal. He said he was speaking on behalf of fellow mine workers at Kayelekera Mine. He said he worked at Kayelekera during the previous operations when the mine was under Australia’s Paladin Africa who later halted operations in 2014. He re-joined the mine and is now working under Lotus Africa.

The man explained that the working conditions were far much better under Paladin than now citing that other mine workers are leaving for greener pastures at upcoming local mining projects such as Kangankunde and outside Malawi.  For example, he alleged that Paladin used to enrol mine workers and their families in a medical scheme while Lotus only caters for the individual worker leaving out the family members.

He also complained that the salaries for Malawians at the mine are miserable as compared to foreign employees alleging that foreign technicians from countries such as Zimbabwe, Tanzania and Zambia get in excess of K15-million take home pay at Kayelekera but Malawians of similar grades get less than K1-million after tax deductions.

I tried to reason with him that it could be that locals are receiving lower salaries because the Company is following the country’s labour laws in deciding their perks while foreigners are paid better salaries because they are recruited as expatriates.

The man further pointed out that during the Paladin days, there were weekly flights organised by Paladin to ferry employees originating from other regions to and from Blantyre and Lilongwe to visit their families. This arrangement is not there anymore during these Lotus days when employees are forced to rent substandard houses at Karonga Boma as they are not allocated accommodation at the mine.

But what mainly captured my interest were his complaints about meals provided by the Company: “Akungotidyetsa bonya ndi nyemba basi, Malume” meaning “they are only giving us meals with bonya and beans as relish, Uncle.”

In Malawi, the name “bonya” is given to very small dried usipa fish. Usipa is a small sardine like freshwater fish endemic to Lake Malawi widely consumed in Malawi and Mozambique.

This is the cheapest fish found on the market whose consumption  is mostly associated with low-income families though average and high income earners would still take bonya as a matter of choice not as part of a daily menu.  During political campaign periods, opposition politicians always accuse the ruling of feeding people bonya implying that their economic policies are leaving the masses in poverty.

Eating daily meals of beans is mainly associated with prisons because most of the prisons are known to provide maize meal (nsima) with beans to prisoners as a daily meal.

What this implies is that the miners feel they are provided with substandard meals This is what a Malawian miner could not expect understanding that mining is a lucrative business with prices of uranium mined at Kayelekera skyrocketing on the global market and major shareholders of the mining company living in luxury in global financial capitals.

Outsourcing is the answer

When Paladin Africa operated the Kayelekera Uranium Mine, Mota-Engil was the mining contractor and worked alongside other contractors in executing mining works. There were also a number of foreign and local service providers and suppliers.

However, when Lotus made the investment decision to reopen the mine, they opted to go into owner mining implying there is no mining contractor hired. The Company is only working with contractors handling smaller assignments, key suppliers, and service providers in different areas.

Reacting to the news, I said that this is not the right method because in order to better share benefits from the mine, Lotus needs to engage a mining contractor that must take on board a Malawian joint venture partner to contribute in meeting local content provisions and facilitate technology transfer to local contractors.

But a local director of Lotus was quoted in the Press arguing that it would be profitable for the Company to embrace owner mining at Kayelekera. But are all these negative issues not coming out due to this more profitable owner mining model?

I believe Lotus is a company with integrity that is pursuing sustainability principles in pursuing its projects. My plea to the directors is that while profit is at the core of any business, it is important to outsource most of the works and services to uphold the quality while not compromising on efficiency.

I believe if a small-scale contractor is hired just to undertake emergency works around Kayelekera, it cannot take time to repair the bridge damaged due to overflow of Sere River or any damaged infrastructure in the locality that the Company wants to repair as part of Corporate Social Responsibility.

I believe if a catering company from Karonga is hired to provide meals to the mine workers at Kayelekera, they would not be these bonya and beans menu complaints.

I believe if a media or public relations firm is recruited at Kayelekra, it would work with Management to make sure that the Company maintains high standards on different areas of operations to avoid these disgraceful allegations on bonya.

The local Kayelekera workers are certainly singing better songs of the Paladin days compared to the current scenario because Paladin was outsourcing most of the works and services and I think it is important for Lotus to emulate this. A contractor or a consultant will perform to the best of its capability in order to satisfy the master. This helps in improving and upholding quality and efficiency of operations.

To wrap it all, Malawi needs a better Kayelekera than in the Paladin days. If Paladin was able to sponsor a local football club in Karonga, Paladin FC, any Malawian of good will would appreciate If Lotus, as a Karonga-based corporate citizen of goodwill, starts sponsoring Karonga United Football Club. This is a club which has been performing well in Malawi’s elite league despite financial struggles.

If Paladin was offering scholarships to selected Malawian doctors to train in Australian universities in treating cancer, which is associated with radioactivity resulting from exposure to uranium, any Malawian of good will would appreciate if Lotus continues with such a programme.

When former President Lazarus Chakwera officially inaugurated the Kayelekera Uranium Mine, he called for a better Kayelekera than the Paladin days that would adequately benefit Malawians under Lotus. Definitely a better Kayelekera is a Kayelekera where local employees enjoy equal benefits with foreigners of the same grade doing similar work.

Definitely a better Kayelekera does not come with a daily menu of nsima with bonya  and beans for mine workers. Daily bonya meals are a myth for miners of uranium who would not be comfortable to encourage their children to work hard in school and be employed in mines with such a scenario.

There are mounting calls from mining industry commentators for Australian Lindian Resources to consider processing of monazite it wants to start mining from Kangankunde in Balaka within Malawi.

Lindian, which is mobilising machinery to start mining this year, has planned to export monazite concentrate from Kangankunde to Iluka Resources’ refinery in Australia.

The company signed a 15-year binding offtake agreement with Iluka for 6,000 tonnes per annum of rare earth concentrate and a US$20-million loan facility from Iluka to support project construction.

But our local readers continue to react to the Kangankunde Project development articles in our social media channels where there are calling on the Malawi Government to ensure that the Kangankunde product is fully processed locally into high value rare earth elements.

Mineral Sector analyst Felix Ngamanya Sapao explains that using current world market prices in calculations, Malawi will gain US$6,500 per metric tonne if the country exports concentrate from Kangankunde compared to US$65,000 per tonne if it is refined locally.

Sapao says: “Government needs to investigate the economic advantages and disadvantages for Malawi regarding the export of monazite concentrate versus domestically refined rare earth products focusing on tax revenue, royalties and job creation.”

“There is also a need to evaluate whether exporting concentrate is ideal for Malawi comparing the trade-offs between immediate economic returns and higher value-add retention.”

He explains that rare earth is a globally strategic mineral hence Malawi risks losing it cheaply if it fails to control its exports in order to realise whole value of the resource hinting that without restricting raw exports, international investors will consider Malawi as only a source of cheap raw materials other than a viable investment destination.

Seasoned geologist Ignatius Kamwanje commented that full processing of the ,monazite within Malawi can enhance technology transfer and skills development saying if this process is conducted in a foreign country, Malawi is denied such benefits.

Kamwanje says; “With full scale processing, Government can collect increased revenues from taxes and royalties. It can also facilitate diverse value-added products in a country hence fetching increased revenue through the sale of finished products.”

“Full scale production facilitates employment creation, building of the local supply chain through purchase outlets that enhance economic activities in so doing may facilitate economic diversification and infrastructure development.”

“All in all, investing in processing facilities drives infrastructure development including energy sources, roads, banking and market facilities.”

State President Arthur Peter Mutharika issued an Executive Order banning exportation of raw minerals from Malawi.

Mutharika states in the Executive Order that it is aimed at ensuring the sustainable development and utilization of the country’s mineral resources, and to promote the growth of the national economy through value addition and industrialization.

“The purpose of the Executive Order is to prohibit the exportation of raw minerals, promote local value addition, and ensure that our mineral resources contribute to the economic development and prosperity of our Malawi, “he says.

He explains that the order, which came into effect on October 21 this year shall apply to all minerals extracted in Malawi including but not limited to uranium, rare earth elements, niobium, graphite, tantalum, bauxite, coal, limestone, gemstones, heavy mineral sands, vermiculite, phosphate, pyriterutile, gold, diamonds and copper.

“The provisions shall not apply to minerals that have been processed, refined or value added in Malawi in accordance with the laws and regulations governing the mining sector,” states the Executive Order.

Lindian responded that it will not be affected by the ban as it will process the ore to concentrate form, which is the highest level of beneficiation that is possible in Malawi.

Kangankunde Rare Earth Project in Balaka is one of the largest rare earth deposits in the world. Lindian is operating the globally significant prospect using a medium scale mining licence that it bought from a local company Rift Valley Resource Developments.

Rift Valley acquired the licence following protracted court wrangling that pitted the Malawi Government and various investors who were interested to develop the globally significant asset.

The Ministry of Energy and Mining has embarked on consultation meetings to review the Mines and Minerals Act of 2023.

The Department of Mining says in an article on its Facebook Page, it has embarked on the process of formulating the new Law in collaboration with the Mining and Minerals Regulatory Authority (MMRA), which is mandated to regulate and administer the mining sector.  

The article reads:  “MMRA, as the statutory body mandated to regulate and administer the mining sector, has made notable progress since the 2023 Act came into force, including in processing licence applications, aligning the existing mining cadastre with the Act, issuing guidance, and engaging licence holders across all scales of operation.”

“However, through implementation, key policy and regulatory gaps have been identified that could hinder effective sector governance, limit revenue and developmental benefits, and create legal uncertainties affecting investor confidence and community trust.”

“This ongoing review reflects Government’s commitment to strengthening transparency, enhancing governance, and ensuring Malawi fully benefits from its mineral resources.”

Commenting on the development, President of the Federation of Artisanal and Small-Scale Mining in Malawi (FASMM) Percy Maleta commended the step taken by MMRA and the Department of Mines to strengthen the mining sector legal framework and expressed hope that other stakeholders will be fully consulted.

Maleta urged the authorities to consider increasing Small Scale Mining License (SSML) hectarage from 2ha to around 10ha and allow mechanisation as one way of modernizing the sector as well as extending Retention Mining License (RML) duration to at least three years for stability.

He also urged for introduction of an Artisanal Mining Licence at district level to drive formalization, consider reducing royalty to 1% on value-added minerals/gemstones to promote local beneficiation and; categorise licences by capital for instance, up to US$2M for small-scale, US$2M to $50M for medium and U$50M large scale to attract investment.

Maleta said: “On gold, allow licensed miners/dealers to export, with conditions, sell 20% to Reserve Bank of Malawi (RBM) and ensure full repatriation of export proceeds.”

“Also important is to structure licences across the value chain: artisanal, small, medium, large-scale, plus brokers, dealers, lapidaries, jewelers, smelters, refiners, to improve clarity, compliance, and revenue.”

“For inclusivity, quarrying, brick-making, and sand harvesting licences could be reserved for Malawians including cooperatives to empower locals.”

The reviewing of the Mines and Minerals Act of 2023 has come at a time when ASM subsector is a encountering a host of challenges including the ban on export of raw minerals, insufficient value addition laboratories, financial support and many others.

Mining Expert Ignatius Kamwanje asked the Ministry to conduct thorough consultations to ensure it addresses all the complaints waged by experts and Civil Society Organisations across the country.

Kamwanje said it is sad to see the Act being amended just after two years, saying this is a clear indication that many key stakeholders are not included during consultations.

He also added that the Ministry should consider adding to revising the tax regimes especially on large scale mining operations suggesting revision of royalty rates, corporate tax, resource rent tax, non-diluting equity, and stability period.

He said: “I have not seen much on auditing capacity and mechanisms through a tailored framework on illicit financial flows like smuggling or transfer pricing where companies have non-disclosure entities but operating on the chain creating tax havens, and the ring fencing mechanisms the country can take.”

“They should also work on a clear definition and specifications on mineral processing, beneficiation, refining as well as how much is included in the Act in terms of Regulatory Capacity for instance, monitoring the role of local government authorities.”

“The 2023 Act removed a mandatory 10 percent free carry equity for the government in large-scale projects, allowing the government to negotiate percentage ownership instead. This creates weak revenue bargaining power and the country loses a lot.”

On Managing Mining Development Agreement (MDA), Community Development Agreement (CDA), and Sovereign Wealth Funds, Kamwanje emphasized the need to come out clear in terms of transparency and ensuring total community inclusion in negotiations.

He said: “On ASM formalization, the sector remains poorly organized, making it difficult for workers to access finance, mining equipment, and secure markets.”

“The Act needs to be tough on workers’ safety and come up with robust specifications on safety standards, safety nets, guidelines, understanding that underground mines are limited or do not appear in the existing Act.”

However, Coordinator for Natural Resources Justice Network (NRJN) Kennedy Rashid bemoaned the rush to amend the law other than the outdated Mines and Minerals Policy.

Rashid noted that the current Mines and Minerals Act of 2023 and its proposed amendments were designed to operationalize the Mines and Minerals Policy of 2013 which is now 13 years old.

He said: “In a decade-plus, we have seen shifts in global mineral demand, artisanal and small-scale mining dynamics, environmental governance standards, fiscal regimes, and most importantly, Malawi’s own development blueprint, Malawi Vision 2063.”

“Our Vision 2063 prioritizes industrialization, wealth creation, environmental stewardship and local content and the 2013 policy does not adequately anchor these ambitions, which is vivid in the lack of recognition of green minerals.”

“It predates many of the governance innovations we now need like in the case of Environmental Social and Governance standards.”

Rashid disclosed that as NRJN they recommend that the revision of the Mines and Minerals Act must be paused or proceeded with caution, but only in parallel with or immediately after a comprehensive revision of the Mines and Minerals Policy of 2013.

Rashid said the policy must first be updated to reflect Vision 2063, climate-resilient mining, benefit-sharing mechanisms, community consent protocols, and transparent revenue management.

“Only then can the law be drafted and amended to faithfully respond to that updated policy.Otherwise, we will continue in a reactive cycle: a law chasing a policy that no longer represents our reality or aspirations. Let us get the policy right first. Then let the law follow,” he said.

The World Bank says with coordinated government action, Malawi’s mining sector can transform the country’s economy by generating over US$30 billion in export earnings between 2026 and 2040, more than doubling the country’s current total exports..

In its report titled “From Potential to Prosperity; A Roadmap for Malawi’s Energy Transition Minerals; the Bretton wood institution points out that seven projects are at advanced development stages, includ ing Kayelekera Uranium which restarted mining in third quarter of 2025, Kasiya Rutile-Graphite, Kangankunde and Songwe Hill Rare Earth, Kanyika Niobium-Tantalum, Malingunde Graphite, and Makanjira Heavy Mineral Sands.

“Under the Business-as-Usual scenario, only Kayelekera, Kasiya and Kangankunde are expected to proceed, limiting revenue potential. However, targeted government action could unlock additional projects, greatly increasing long-term revenue,” reads the Report,

The Bank says while the business-as-usual scenario would limit annual government revenue to around US$400-million by 2040, with targeted reforms, revenue could rise to US$600 million annually, making a significant 50 percent increase.

The report notes that mining operations are expected to require an addition 120 megawatts of power by 2032 yet Malawi continues to face persistent energy shortages, grid instability and climate related vulnerabilities, which discourage potential investors.

“There is need to accelerate power generation projects, including the Mpatamanga Hydropower storage initiative, and strengthen regional electricity interconnections with neighbouring countries such as Mozambique and Zambia. Access to the Southern African Power Pool is seen as critical to stabilizing supply and reducing costs,” says the Bretton wood institution.

Besides energy, the report highlights policy uncertainty and macroeconomic instability as key deterrents to investment saying investors continue to face challenges linked to foreign exchange shortages, exchange rate distortions, and restrictive foreign exchange policies, which contributes to a wide gap between official and parallel market rates, further undermining investor confidence.

To address these issues, the report calls for a more predictable and market based foreign exchange regime.

It also recommends reforms aimed at improving regulatory efficiency, including clearer guidelines on government equity participation, standardized mining development agreements and streamlined licensing processes.

Strengthening geological data systems and enhancing contract negotiation capacity are also identified as critical steps toward reducing investment risk.

As a landlocked country, Malawi relies heavily on road transport, with approximately 70% of freight moved by road. The report observes that long border clearance times and high logistics costs continue to hinder competitiveness.

It emphasizes the need for urgent upgrades to key transport corridors, rehabilitation of major road networks, and improvements of border facilities. Reconnecting rail links to the port of Nacala is also seen as a strategic priority to facilitate mineral exports.

Malawi is currently under growing pressure to strengthen environmental and social governance in its mining sector as the country pushes to unlock mineral wealth for sustainable development. The World Bank warns that without strong oversight, communities particularly in the Central and Southern regions, risk missing out on the benefits of mining expansion.

The report highlights the need to fully equip regulatory bodies such as the Malawi Environmental Protection Authority (MEPA) and the Mines and Mineral Regulatory Authority (MMRA) to efficiently enforce standards.

It calls for greater transparency, including mandatory public disclosure of mining contracts, Environmental and social impact Assessments (ESIAs), and community agreements.

Formalizing the artisanal and small-scale mining sector, which supports more than 40, 000 people, is also identified as a priority, alongside efforts to eliminate mercury use in ASM.

The Bretton wood institution also advises Malawi to adopt stronger fiscal systems to ensure it captures meaningful benefits from its mineral resources. It cautions against relying heavily on state equity participation at the expense of taxes and royalties, noting that well-structured fiscal instruments provide more predictable revenue.

The World Bank says there is need to improve tax administration, strengthen oversight of complex mining transactions, and adopt measures to manage commodity price volatility.

It reads: “Expectations around mining revenues must remain realistic. Significant financial returns are unlikely to materialize before 2030, raising concerns about premature government spending based on projected income.”

The report warns of the risk of a “resource curse”, where overreliance on anticipated revenues could lead to unsustainable debt and fiscal instability. Aligning public expenditure with realistic revenue projections is therefore seen as critical.

The report also says a major challenge lies in the country’s limited skilled workforce as currently, only about 2.5% of workers possess the technical qualifications required for the mining industry.

“Without urgent intervention, companies are likely to depend on expatriate labor, reducing local employment opportunities. The report recommends expanding technical and vocational training, establishing mining focused centres of excellence, and strengthening apprenticeship programs to build local capacity,” it reads.

Malawi is drawing critical lessons from experiences of resource rich nations, as evidence shows that early mining investment alone does not guarantee lasting success. Countries like Burkina Faso highlight the need for strong sector reforms to anchor growth, while Chile demonstrates the value of long term vision and consistent governance in sustaining a thriving mining industry.

In contrast, Mauritania’s experience warns on the risk of maintaining a “business as usual” approach without accelerating reforms, leading to limited long-term gains. Laos offers perhaps the clearest cautionary tale, where an initial boom in the early 2000s, driven by rapid mine development, ultimately gives away to declining production and reduced economic contribution due to stalled reforms.

Reacting to the report Coordinator for Natural Resources Justice Network (NRJN) Kennedy Rashid said the report presents a strong vision for transforming Malawi’s mining sector.

Rashid said: “I agree that the opportunity is indeed significant. The roadmap report can be a useful guide, but its success will depend on implementation. Without strong accountability and community inclusion, Malawi risks repeating a pattern where mining wealth cannot translate into real development for its people.

“The transformation will only be meaningful if it priorities transparency, accountability, community benefit and environmental protection. I fully support the recommendation for mandatory public disclosure of mining contracts and key documents. Transparency must be enforced in practice, with communities able to access and understand information that affects their lives on a day to day basis.”

Rashid also said strengthening institutions like MEPA, local government authorities and MMRA is essential, but this must include real independence and enforcement capacity to prevent environmental harm and ensure fair resettlement and compensation.

There were a number of negative comments from Malawians when Sovereign Metals signed a non-binding memorandum of understanding (MOU) for graphite marketing from its Kasiya Rutile-Graphite Project with US Company Troxys at this year’s Investing in African Mining Indaba in South Africa in the presence of a representative of the US Government which is sourcing critical minerals from Troxys and other companies through its US$12-billion Project Vault.

There were a number of negative comments from Malawians when Sovereign Metals signed a non-binding memorandum of understanding (MOU) for graphite marketing from its Kasiya Rutile-Graphite Project with US Company Troxys at this year’s Investing in African Mining Indaba in South Africa in the presence of a representative of the US Government which is sourcing critical minerals from Troxys and other companies through its US$12-billion Project Vault.

Following this deal, as reported in our article on Page 8 and 9, Sovereign Metals has signed another MOU with a Japanese firm Mitsui for the purchase of rutile from Kasiya.

The agreement with Mitsui is also non-binding, meaning it simply reflects an intention to work together and negotiate a future commercial agreement if the project proceeds successfully.

The Kasiya project has also attracted other strategic partners, including global mining giant Rio Tinto and the International Finance Corporation of the World Bank, which are involved in investment and environmental standards for the project.  

As Sovereign MD and CEO Mr Frank Eagar is quoted in the article, there is no cause for alarm for Malawians on these deals as they do not imply that there is any mining taking place now at Kasiya that Malawi is not benefitting from.

As Eagar writes, such arrangements are common in the mining industry because investors and lenders often require evidence that there will be reliable markets for a mine’s products before they commit the significant funding needed to build it.

It is our plea to Malawians to work with the Government in ensuring that there is a conducive environment in the country that tolerates mining investment by showing good will to law abiding investors.

It is a fact that as owners of the country’s mineral resources, Malawians want huge benefits from the minerals. But citizens will adequately benefit through a favourable legal and regulatory framework, and mining development agreements that companies sign with the Malawi Government not through government presence in signing of MOUs between investors.