Mining & Trade News

ASX-listed Tusker Minerals has identified high-grade titanium mineralisation dominated by rutile across its Mzimba exploration licences in northern Malawi following early-stage reconnaissance sampling.

The results come from a review of the Company’s initial reconnaissance soil and rock chip sampling program, supported by geochemical analysis and mineralogical testing using advanced technologies, and represent an important early validation of the project’s prospectivity.

CEO Cliff Fitzhenry commented: “We are very encouraged by these early-stage results from the Mzimba Project. Initial reconnaissance sampling has returned strong TiO₂ values across a relatively small portion of the licence area, with nearly half of the soil samples exceeding 1% TiO₂ and peak assays reaching 1.88%.”

“Importantly, XRD mineralogical analysis confirms that the titanium is hosted predominantly in rutile and, to a lesser extent, anatase, with no ilmenite identified in the analysed samples.

The project area is underlain by rutile-bearing high-grade metamorphic rocks of the Irumide Belt, similar to those that host major residual rutile systems elsewhere in Malawi.

With more than 700 km² of largely unexplored tenure, Fitzhenry said Tusker sees significant potential to expand these results as it advances follow-up sampling and auger drilling programs.

He said: “Alongside exploration progress at our Central Rutile Project in Cameroon, Mzimba forms part of Tusker’s growing portfolio of highly prospective rutile exploration assets in Africa.”

“As global titanium demand accelerates in green technologies and high-performance industries, these assets strengthen our portfolio and offer substantial long-term value for shareholders. These early results provide strong encouragement for further exploration, and we look forward to systematically evaluating the scale potential of the Mzimba Project.”

Initial reconnaissance sampling returned encouraging titanium results, with 27% (11/41) of soil and rock-chip samples assaying above 1% TiO2 (increasing to 47%, 8/17, when considering only the soil samples). XRD mineralogical analysis on nine samples confirmed the titanium is hosted predominately in rutile, the highest-value naturally occurring titanium dioxide mineral, with minor anatase also present - both forms of high-purity TiO2. Importantly, no ilmenite was detected in the analysed samples, indicating that the titanium mineralisation is largely composed of high-purity TiO₂ minerals dominated by rutile and anatase.

While assays measure total chemical TiO₂ and XRD analysis identifies the titanium-bearing mineral phases present - the combination of results highlight the strong prospectivity of the Mzimba project and its geological similarities to world-class residual rutile systems such as the Kasiya deposit in Lilongwe. With only 7% of the 710 km² licenses explored, Fitzhenry reported that follow-up programs will aim to define resources and assess recovery.

The Mzimba licences are situated within a highly prospective geological setting for rutile mineralisation, underlain by mica schists and paragneiss of the Irumide Belt. These high-grade metamorphic rocks are favourable source rocks for rutile and are comparable to the metamorphic protoliths that host the Kasiya deposit 200km to the south. This favourable regional geological framework enhances the prospectivity of the Mzimba licences for large-scale, near-surface residual rutile mineralisation.

Rutile is the highest value naturally occurring form of titanium dioxide and is a critical mineral used in pigments, aerospace alloys, welding electrodes, and increasingly in advanced lightweight composites and emerging renewable technologies.

The initial 50 km² survey area represents only a small portion of the total licence area, leaving significant exploration upside across the broader project. Tusker plans to immediately mobilise its Malawian exploration team to commence an expanded follow-up programme aimed at rapidly advancing the project.

The next phase of work will include:

• Additional wide-spaced and infill soil sampling to expand and refine the geochemical footprint

• Auger drilling to test the depth, distribution and continuity of rutile mineralisation

• Review and interpretation of available geophysical datasets (including magnetic and radiometric surveys) to refine priority       target areas

Malawi is increasingly attracting attention from international industries looking for the reliable supply of critical minerals. One example is the Kasiya Rutile and Graphite Project, which has drawn interest from global mining companies, lenders and commodity traders.

While this growing international interest is positive for Malawi, it has also raised questions about how large capital intensive mining projects are developed and what partnerships such as offtake or marketing agreements actually mean.

Mining projects typically take more than a decade to move from mineral discovery to production. During that time, companies must complete detailed engineering studies, assess the environmental and social impacts over multiple seasons, obtain environmental approvals, secure financing and negotiate agreements with communities and governments.

One of these steps to achieve finance, is securing future buyers and develop markets for the products a mine will produce. These are known as offtake or marketing agreements.

Recently, the company developing the Kasiya project announced a non-binding memorandum of understanding with Mitsui & Co., a major Japanese trading and investment company, indicating its interest in purchasing up to 70,000 tonnes of rutile per year once the project begins production.  

It is important to understand what such agreements mean.

An offtake agreement does not transfer ownership of Malawi’s minerals. The resources remain governed by Malawian law and can only be mined once all government approvals are granted.

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.  

Such arrangements are common in the mining industry. 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.

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

For Malawi, these partnerships represent growing international confidence in the country’s mineral potential and its ability to participate in global supply chains for critical minerals.

The most important point is that these agreements are only one step in a long development process. Before mining begins, the project must still complete feasibility studies, environmental approvals and licensing processes required under Malawian law.

As Malawi’s mining sector continues to grow, understanding how these processes work will help ensure informed discussions about how the country can benefit from its natural resources.

Frank Eagar is Managing Director and CEO of Sovereign Services Ltd

A Technical Task Force drafting the Sovereign Wealth Fund (SWF) has proposed an implementation plan that will involve hosting the fund at the Reserve Bank of Malawi (RBM) to ensure that it is not mismanaged and fully benefits the country’s economy.

Speaking during the SWF validation meeting on the final feasibility study in Lilongwe, Chairperson for the Task Force Adwell Zembele stressed that establishing the Malawi SWF to save the revenues at RBM will protect it from being used to pay the government’s creditors.

Zembele also elaborated plans to draft MSWF legal, regulatory and governance framework as well as constitute board of directors for the fund.

He said: “Once the MWSWF is established by law, the Board of Directors will be named and begin their work of establishing the sub-funds, first by hiring CEOs and senior managers, then by deciding on key policies of the fund, and disbursing funds.”

Zembele also said there is need to develop operational policies and guidelines, which will include: investment guidelines, risk management strategy, external manager model contract, procurement policy, board procedures, asset valuation guidelines, annual financial reporting template, public communications framework, code of conduct for board, managers and staff and, human resources policy.

 “The MWSWF, if well designed and managed, can be transformative for the country. The scale of the impact of the fund will depend on issues like the mining projects that are developed and their legal terms; the effectiveness of the government to fully collect taxes and royalties; the strength of the fund’s investment guidelines, oversight and transparency; and the fund manager’s competence and levels of effort,” he said.

In his keynote address, RBM Deputy Governor for Operations Kisu Simwaka called for collaboration in order for the fund to successfully impact the national economy.

Simwaka said if the key players join hands in developing the fund with integrity, discipline, and unity, it can help the nation to finance modern infrastructure, build skills for new industries, diversify the economy, reduce dependence on external financing, and unlock the economic potential of every district in the country.

He said: “We are ready and reaffirm our unwavering commitment to championing good governance, financial integrity, and strong institutional stewardship of this national asset. Malawi’s mineral wealth must uplift all Malawians today, and long after we are gone,” he said.

“If we stay united in this purpose, if we remain disciplined in implementation, then years from now our children will look back and say: ‘That was the moment Malawi chose a different future. A future of responsibility. A future of dignity. A future of hope. This is how we turn a mineral opportunity into a permanent national legacy.”

Simwaka hailed progress of some mining projects in the country saying they are symbols of possibilities that will rewrite Malawi’s economic story.

He said the credibility of the fund will depend not only on its objectives but also on its governance saying it is the anchor of Trust.

“A Sovereign Wealth Fund designed for Malawi’s realities gives us three powerful tools of stability, savings and, Strategic investment. The framework presented today from the Mineral Revenue Account to the Earmarking Fund, to the Malawi Investment Fund offers us a path guided by discipline, transparency, and long-term vision. From a macroeconomic standpoint, this is not just good practice but also indispensable for building a stronger, more resilient economy,” Simwaka said.

In his State of the Nation Address (SONA), the state President Peter Mutharika expressed his commitment to establish the fund.

The feasibility study is being supported by Adam Smith International’s Malawi Value Development Office’s Malawi Trade and Investment Programme.

ASX-listed Lindian Resources, which is operating the globally significant Kangunkunde Rare Earth Mining Project in Balaka using a medium scale mining licence obtained from a local company Rift Valley Resource Developments, has threatened to use “legal rights” against Marcel Chimwala, the author of an opinion article that Mining & Trade Review published in its Mining & Social Issues column in mid-April 2026 edition headlined Hungry Hyenas feasting on Kangunkunde Mine.”

A letter from Kalekeni Kaphale Lawyers, acting on behalf of Lindian Resources and Rift Valley Resource Developments queries the article for highlighting issues surrounding Lindian’s use of a medium scale mining licence to run the globally significant Kangunkunde, which is one of the largest rare earth resources globally, and the issue of Lindian giving allowances to government officials mentioned in the article.

It also questions the article for the logic that in using a medium scale mining licence, the Kangankunde Project will deprive the local community of benefits associated with large scale mining such as signing of a community development agreement and mining development agreement.

The letter signed by Dr Kalekeni Kaphale also queries the article for the logic that by purchasing a refinery in Kazakhstan to process Kangankunde ore, Lindian is exporting jobs to that country in so doing depriving Malawi of the technology transfer advantage that could come with a local refinery.

Lindian demanded that the author publishes its response on the article,  

Lindian responds to “ Hungry Hyenas Feasting on Kangankunde Mine” 

Lindian Resources, which is preparing to start monazite mining for rare earth production at Kangunkunde in Balaka through its subsidiary Rift Valley Resource Developments (RVRD), has responded to an article published on Mining & Social Isuues column in Mining & Trade Review issue number 177 entitled “Hungry Hyenas Feasting on Kangunkunde” expressing concern that the Company nor any government official was neither contacted by the writer nor quoted in the article.

THE MEDIUM-SCALE LICENCE: THE LAW IS CLEAR

In a letter signed by its Executive Chairman Robert Martin addressed to the author and Publishing Editor Marcel Chimwala, Lindian dismisses allegations in the article that Lindian is deliberately operating under a medium-scale mining licence to avoid its obligations under a Mining Development Agreement (MDA) and Community Development Agreement (CDA}.

“This allegation is wrong, and it is wrong for a straightforward legal reason: RVRD's current operations at Kangankunde do not meet the production and operational thresholds prescribed under the Mines and Minerals Act (2023) that would require or qualify the project for a large-scale mining licence. The licence classification is not a choice - it is a legal determination based on the scale of the operation. Applying for a licence category that the project does not meet would be legally improper.”

“The Mines and Minerals Act (2023) is unambiguous on this point. MDAs and CDAs, along with government equity participation, are obligations that attach exclusively to large-scale mining licences. They are not triggered at medium scale. RVRD operates in full compliance with the Act.”

“Further, and for the avoidance of doubt, RVRD acquired its medium scale licence before RVRD's shareholders' shares in it were acquired by Lindian. At all material times RVRD, the mining license holder, has availed all data pertaining to the Project as required by law under the Mines and Minerals Act. It is therefore improper to suggest that either RVRD or Lindian have somehow perverted the law or public officers to operate under a lower level license.”

Corruption Allegations: Unsubstantiated, Offensive, And False

The letter states that the article alleges, through unnamed sources. that Lindian has corrupted government officials - through allowances and other means - to secure favourable treatment.

It reads: “We take these allegations made by you extremely seriously and reject them in the strongest possible terms. It is false, it is without evidence. and it was published without any attempt to verify it with us. We reserve our rights pertaining to this allegation by you as it has direct impacts on reputations, company share price and our ability to operate without unfounded, untrue, prejudicial allegations that have now reached a global audience.”

“Lindian is an ASX-listed public company. We are subject to Australian law, Malawian law, and the ASX Listing Rules - all of which carry serious, enforceable consequences for corrupt conduct. RVRD is equally bound by the laws of Malawi. Neither company has ever offered, paid, or authorised the payment of any bribe, inducement, or corrupt benefit to any government official, parliamentarian, or public servant, anywhere. Our governance standards are not aspirational - they are legally binding and actively enforced.”

Lindian, however, admits sponsoring government officials to attend international mining conferences saying this is a declared, legal, and standard practice across the global mining industry which is not conducted covertly as it builds the technical expertise and international networks of Malawian officials responsible for governing a sector that the country is counting on for its economic future.

The letter reads: “To characterise it as corruption is not only inaccurate - it is an insult to the officials involved and to the institutions they represent. It is also shared across all companies that are operating in Malawi.”

“The article also makes reference to unnamed Members of Parliament who allegedly demanded and received payments from Lindian. Neither Lindian nor RVRD has been approached and or made any payment to any parliamentarian outside of lawful. documented, and transparent processes. We reserve our rights on these allegations you have made.”

Processing Arrangements: A Strategic Decision Grounded In Technical Reality

The article claims that by processing rare earths outside Malawi, Lindian is exporting jobs and depriving the country of rare earth processing technology.

But Lindian trashes the assertion saying first, and most importantly, Lindian is processing ore in-country to a downstream stage as current infrastructure, energy, economic and environmental viability allows.

Martin explains that a process plant is currently under construction at Kangankunde that will process run-of-mine ore into a premium monazite concentrate. “This is in-country processing. This is value addition. This is job creation on Malawian soil. The article's suggestion that Lindian is making no effort to process locally is simply not true.”

Lindian owns a downstream hydrometallurgical processing plant in Kazakhstan which will convert monazite concentrate into a mixed rare earth carbonate (MREC). Martin describes this plant as a significant strategic asset hinting that the facility has established, direct access to the specialist chemical reagents, including the specific acids and solvents required for solvent extraction and precipitation circuits, that further downstream rare earth concentrate processing demands.

The letter reads: “These reagents must be available in large, continuous, and precisely controlled volumes. The Kazakhstan plant is built for this. It is not a workaround - it is the right facility for the job, and Lindian has invested in it accordingly.”

“Even more importantly, rare earth hydrometallurgical processing also requires an extremely reliable, uninterrupted supply of water. gas and electrical power at sustained industrial scale. These are not discretionary inputs - the processing circuits operate continuously, and any interruption risks process failure, equipment damage, and substantial product loss. At the scale that Kangankunde requires, this level of water and power reliability and volume is not currently available in Malawi. This is a factual infrastructure position, not a reflection on Malawi's ambitions. It is, in fact, a challenge that the Government of Malawi and its development partners are actively working to address. These facilities are also extremely hazardous and un-environmentally friendly and would require years of environmental work required even to design them, let alone have them approved.”

“We note that in the same edition of your publication, Emmanuel Chinkaka of the Malawi University of Science and Technology wrote independently on page 10 that mineral processing "is an energy intensive venture" and that stable energy availability is the key precondition for domestic processing to be viable. This is a Malawian academic making the same assessment, that informs our current arrangements.”.

Martin also explains that the offtake and processing agreements Lindian has secured are what make Kangankunde commercially viable and bankable. “Without them, there is no mine. Without a mine, there are no jobs in Malawi, no royalties, no taxes. and no community development. These agreements are the foundation of everything the project will deliver for Malawi.”

Community Investment: We Are Proud Of What We Have Built

Lindian also takes a swipe at the article for describing Lindian and RVRD's community investments at Kangankunde as inadequate.

“We disagree strongly, and we suspect so would the community members who have benefited from it. Lindian and RVRD delivered the Project Early Learning initiative, officially launched by Minister of Education Hon. Bright Msaka SC, which included the construction of a brand new school and sanitisation facilities at Kangankunde Primary School and the provision of books, pens, and learning materials to learners. These are permanent infrastructure improvements that will serve the children of Kangankunde for generations. They were not required by law. They were delivered because Lindian and RVRD is committed to being a responsible and long-term partner in this community.”

“Lindian and RVRD also constructed the access road from the M1 to Kangankunde to gravel standards. This road serves the entire community - every farmer, trader, health worker, and family that travels it benefits from it. That road existed before the event, before his visit, and will be there long after. That is what genuine infrastructure investment looks like.”

“All of this has been delivered voluntarily, in advance of any legal obligation, before the Kangankunde project even begins generating revenue. The community of Kangankunde liaise closely through a very effective community engagement plan (CEP) to choose the development priorities that matter most to them, and we will deliver on them. That is our commitment.”

Calls For Licence Revocation: An Irresponsible Suggestion

Lindian also slams the suggestion in the article that Government needs to revoke RVRD's licence and hand over Kangankunde to a "capable investor" describing it as legally uninformed and, frankly, irresponsible hinting that licence revocation under the Mines and Minerals Act (2023) is not a matter of opinion or public sentiment.

“It is a formal legal process that requires a demonstrated basis in law, proper procedure, and a hearing. Lindian and RVRD has done nothing that would constitute grounds for revocation. We are compliant with our licence conditions, current in our obligations to the MMRA, and operating within the full framework of Malawian law.”

“Beyond the legal question, the broader damage that commentary of this kind does to Malawi's investment climate should not be underestimated. Malawi is actively competing to attract serious capital into its mining sector. Investors - the kind who build mines, create jobs, and pay taxes - read publications like this one. When they see calls for arbitrary licence revocation based on anonymous community opinion, it signals risk. Malawi cannot afford that signal. RVRD and Lindian have invested significant time, capital. and trust in this country. We expect the same standard of factual rigour from those who write about us that we apply to our own operations.”

The Ministry of Energy says resumption of oil and gas exploration in the country is awaiting the enactment of a new Law as the Ministry is pushing for finalization of the Petroleum (Exploration and Production) Bill for consideration for tabling in parliament.

Government is working on reviewing the Petroleum (Exploration and Production) Act 2003 to come up with a new Law that is in tandem with current developments.

There is, currently, no hydrocarbon exploration activities in Malawi after foreign mineral exploration companies relinquished their licences several years ago before embarking on any drilling works citing complications regarding the prevalence of Covid-19 pandemic.

However, the Ministry approved the new National Petroleum (Exploration and Production) Policy in 2023.

 In an interview with Mining and Trade Review, Director in the Department of Mines Burnet Msika said the Ministry is pushing to have the new Act in place as a way of ensuring that the policy is effective and efficiently implemented.

Msika said: “Understandably, the Ministry has been and is vehemently pushing for the finalization of the Petroleum (Exploration and Production) Bill for consideration for enactment by Parliament, pursuant to the approval of the new National Petroleum (Exploration and Production) Policy in 2023.

“This is to ensure and safeguard effective and efficient implementation of the aforementioned Policy and enhancement of sound governance and regulation of the upstream petroleum sector in the country.”

Malawi has six oil and gas blocks across the country along the geological zone of the Great African Rift Valley system where the foreign exploration investors conducted preliminary exploration.

Government is planning to re-demarcate the blocks, considered very big, into smaller blocks before awarding them to other investors.

The government is also intending to publish a model petroleum sharing agreement to sign with mineral prospecting firms intending to conduct exploration for oil and gas in the country.

Petroleum resource development, if well managed, has the potential to generate revenue through royalties and taxes; contribution to foreign currency reserves; creation of employment; and transfer of new technologies and skills necessary for socio-economic development of the country.

In view of the foregoing, the National Petroleum Exploration and Production Policy (NPEPP) was developed to provide a new policy direction and guidance in the implementation of interventions in the upstream petroleum subsector.

This is necessary in order to spur socio-economic development as aspired for in Government’s overarching development agenda which is espoused in the Malawi 2063.

This Policy is coming at a time of a renewed interest in the development of the upstream petroleum subsector in the country as well as the rest of Great African Rift Valley Region.

Since the first wave of interest in the development of the oil and gas sub sector in 1980s, there has been an evolution that has necessitated the development of the legal and regulatory frameworks.

It is, therefore, imperative that this Policy should go in sync with the development of new practices in the realms of regulations, science and management covering the whole spectrum of petroleum, and reflecting changes in realities from exploration to exploitation.  

Mkango Rare Earths has announced the results of an updated feasibility study for its Songwe Hill Rare Earths Project in Phalombe, marking a significant step forward for what could become one of Malawi's most important mining developments.

The company's President, Alexander Lemon, noted that Songwe is now among only a handful of rare earths projects worldwide to have reached the Definitive Feasibility Study (DFS) stage. The project also holds a Mining Development Agreement and has completed a full Environmental, Social and Health Impact Assessment in line with World Bank standards — an indication of the rigorous preparation that has gone into bringing it to this point.

Songwe has attracted significant international attention. It has been selected as a strategic project under the European Union's Critical Raw Materials Act and has received US$4.6 million in technical assistance funding from the United States Development Finance Corporation (DFC).

"Songwe in Malawi is a landmark project for the community and the Malawi economy," said Lemon. "Our mission is to deliver sustainable, long-term value for our shareholders and stakeholders."

The project is set to produce rare earth elements - including neodymium, praseodymium, dysprosium and terbium - that are essential to the global shift towards clean energy. These materials are used in the permanent magnets found in electric vehicles, wind turbines and a wide range of electronic devices, meaning demand for them is expected to grow strongly in the years ahead.

According to the feasibility study, Songwe is expected to operate for 18 years, producing an average of nearly 6,000 tonnes of rare earth oxides per year during the first five years of full production. The total cost of developing the mine, processing plants and related infrastructure in Malawi is estimated at approximately US$417 million.

The financial projections are encouraging. The project carries an estimated post-tax net present value of US$339 million and an internal rate of return of 24 percent. Over the life of the operation, post-tax cash flow is projected at US$1.55 billion — figures that underline the scale of economic activity the project could generate for Malawi.

Under more optimistic pricing scenarios, those figures rise further still, with the project's net present value climbing to US$489 million and projected cash flows reaching over US$2 billion.

The mine will operate as a conventional open pit, with ore processed and value add beneficiation taking place on site in Malawi. Songwe will produce a high value purified mixed rare earth carbonate (“MREC”) in Malawi, that can be sold into international markets as a forex generator export. The study confirms mineral reserves of 18.1 million tonnes, and the company believes there is scope to extend the mine's life further as additional resources are explored in the future.

For Phalombe and for Malawi more broadly, Songwe Hill represents a substantial opportunity - both in terms of direct investment and the country's growing role in supplying the critical  materials the world needs for a greener future.

Local artisanal and small-scale miners (ASMs) have welcomed the Reserve Bank of Malawi’s increase of the price that it offers in buying gold from local miners.

The Central Bank buys gold from local ASMs through its subsidiary Export Development Fund (EDF), which has announced an increase in gold purchase price from Mk 400,000 to Mk 570,000 for gold with 95% purity or higher.  

In an interview with Mining and Trade Review, Percy Maleta, President of the Federation of Artisanal and Small Scale Mining in Malawi (FASMIM) acknowledged that the price hike signals a move towards better market access and higher incomes through value addition and structured support.  

Maleta explained that by offering better prices, the Central Bank is fighting gold smuggling by enticing miners who sell gold to smugglers due to better prices.

“While EDF provides a formal channel, many miners still prefer informal routes due to better prices, quicker payments, and fewer barriers, which encourages smuggling.”  

Mwai Zulu, Interim Treasurer of the Gold Mining Association (GMA), echoed Maleta’s concerns urging EDF to expedite processing of payments to the gold dealers.

 “The price adjustment only helps if the price is competitive and payments are quick. If not, miners will still prefer informal buyers.” he said.

Zulu said EDF is not yet the first choice for local miners hence there is a need for the institution to sensitise the miners in gold mining hotspots across the country about its structured market.

He also urged government to create a more favorable environment for ASMs by simplifying licensing and establishing gold buying centers closer to the mining hotspots.  

Maleta also called for strengthening formal markets such as EDF, improving licensing and regulation, investing in processing and value addition, and providing technical and financial support to miners.  

There are a number of informal ASM gold mining hotspots that are sprouting across the country with foreign buyers flooding these sites to buy the precious mineral.

Group Village Headman Saiti of Makanjira told Mining & Trade Review in an interview that  some miners from foreign countries are now invading the Makanjira and Namizimu Forest gold mining site with equipment such as excavators.

ASM illegal gold mining is resulting in a number of cross-cutting issues in the communities including death due to unsustainable mining practices, child labour, drug and alcohol addiction, marriage breakages, increase in school drop-outs, and early pregnancies.

Lotus Africa says it remains on track to deliver nameplate production at Kayelekera Uranium Mine in the second quarter of the year 2026  following consistent performance improvement through the second half of February and into March.

Lotus MD Greg Bittar explains in a Press Release that supply chains for Kayelekera production remain robust, including forward cover for diesel and diversified supply across acid and Sulphur.

Diesel

Lotus has contracted for its diesel requirements through to end June at pricing substantially less than current spot prices. The Company’s diesel supply chain remains intact and Lotus has received no indication of disruptions from diesel suppliers to date. Diesel supply is a key operational focus and in addition to Lotus’ forward order cover, Lotus is putting in place incremental contracts for July but believes it is best to keep a watching brief on price volatility in the near-term before booking further significant supplies.

Sulphuric Acid

Lotus has built up its onsite inventory of sulphuric acid which is supplemented by a significant fleet of supply trucks enroute to Kayelekera. The pipeline of deliveries and orders has not been impacted to date; however, there is pressure on pricing and freight costs. Lotus is working through further orders to minimise third-party acid supply risk.

Sulphur

Lotus has sulphur supply orders in place to end of June, and its two key suppliers have substantial inventory already landed in Tanzania. Lotus’ sulphur volumes are relatively small in the region serviced by East African ports, and neither supplier is indicating any impact at this stage. Nevertheless, Lotus is planning additional supply routes and additional storage for sulphur (including options for offsite storage) to secure maximum inventory availability to support the commissioning of the acid plant from April 2026. Lotus will continue to closely monitor these key items and remains in regular discussions with its suppliers.

Lotus restarted production at Kayelekera in August 2025, on time and on budget. Kayelekera remains the only operating large scale mine in Malawi.

Gemstone miner, ZiGems, has expressed concern over the move by the Mining and Minerals Regulatory Authority (MMRA) to cancel mining licences for those operators considered non-compliant to terms and conditions of their licences.

The MMRA announced in a Press Release that it had completed a nationwide Mineral Licence Compliance Audit covering the period 2020 to 2025.

It reported that the audit revealed widespread non-compliance across the sector, including but not limited to non-payment of ground rent and mineral royalties, failure to submit statutory reports, and holding of inactive or dormant licences.

It, therefore, gave all non-compliant licence holders 30 days to settle all outstanding fees, ground rent, and royalties; submit all outstanding statutory reports; and regularise compliance with all applicable licence conditions.

“Failure to comply within the stipulated period will result in cancellation of licences in accordance with the Mines and Minerals Act, 2023. Affected licence holders will be formally notified through individual notices of cancellation issued to their registered addresses in the Mining Cadastre,” said MMRA.

But Technical Advisor for ZiGems Johnstone Soko said the impact of licence cancellation could be severe and far reaching at a time when many mining businesses are still experiencing the effects of the government export ban on raw minerals, which has significantly reduced access to international markets.

“Any cancellations at this stage will effectively kill the future of most Artisanal small scale mining (ASM) operators who are barely surviving,” Soko explained, warning that this has the potential to wipe out the ASM industry already under strain.

While the MMRA’s move is intended to enforce compliance with regulatory requirements, Soko argued that the underlying causes of non-compliance must first be addressed since many firms are failing to meet the stipulated conditions not out of defiance but due to limited awareness and capacity to properly compile statutory reports.

“Additionally, the financial burden of meeting ground rent obligations has proven challenging for operators in the current economic climate,” he said.

Soko recommended a more balanced approach suggesting that authorities should prioritize stakeholder sensitization, helping firms understand how to compile and submit reports in line with the law.

He also said non- compliant companies should be given adequate time to settle overdue payments before punitive measures are applied.

 “There is a need to for a phased approach starting with education, followed by warnings and fines rather than immediate threats of licence cancellation,” Soko said.

He explained that compiling accurate records and settling accumulated debts require time, particularly for businesses that have fallen significantly behind hence many licence holders are struggling to meet both reporting and financial obligations within the 30-day period.

Clarity of compliance requirements being another key concept raised, Soko argued that existing guidelines do not adequately reflect the complexities of mining operations making it difficult for firms to accurately report their activities.

“The lack of clarity is discouraging compliance altogether, with some operators choosing to continue working informally rather than navigating what they perceive as a confusing system. In extreme cases, businesses are operating without valid licences after expiry, especially if they have already established a foothold in the market,” he said.