Mining & Trade News

A cross-section of stakeholders in the mining sector have expressed concern over government’s intention to sell gold it has bought from Artisanal and Small-scale Miners (ASMs) through the Export Development Fund (EDF), a subsidiary of the Reserve Bank of Malawi (RBM).

Minister of Information and Communication Technology Shadric Namalomba announced that Government is selling gold that is being reserved by RBM to utilize the proceeds from the sale to top up on fuel purchases in light of the acute shortage of foreign exchange, which has resulted in a fuel crisis.

Namolomba made the announcement after Centre for Democracy and Economic Development Initiatives (CDEDI) Executive Director Silvester Namiwa had touched on the issue at a Press Conference in Lilongwe wondering why the country is failing to acquire basic needs including fuel despite reserving the gold and having the potential for increased production from ASM gold mining.

But mining expert Ignatius Kamwanje advised the Government to look for other alternatives that could bring forex rather than selling the available gold which is less than a tonne.

 “Gold reserves are important for a country as a means of  hedging against inflation. The problems arising from selling this gold are that it may push inflation upwards since all the gold will be depleted, may lead to financial independence loss on debt backed assets, and undermine the ability of central bank to gain investor confidence in managing long term risks,” said Kamwanje.

Kamwanje also said if the gold is sold, the country will make loses considering its tactic of buying gold at a higher price than the international market price just to offset smuggling by beating black market rate.

In a separate interview, Coordinator for Chamber of Mines and Energy Grain Malunga also condemned the idea to sell the gold saying it is the only opportunity to use the mineral to strengthen the country’s local currency.

“Gold is supposed to cushion the strength of the local currency. Ideally it should not be sold. We need to build gold reserves. Gold reserves are crucial for a country's economic stability, serving as an asset against inflation and currency devaluation. We need to diversify our central bank reserves, boost confidence in the national currency, and provide high liquidity during financial crises like the one we have,” he said.

Programs Coordinator for Natural Resources Justice Network (NRJN) Joy Chabwera also disagreed with the move saying the challenge that the country has is not just about selling assets but using them wisely to secure long term economic resilience.

 “Instead of rushing to sell, the gold could be used more strategically as bargaining power, for example, RBM could leverage the reserves to negotiate fuel supply contracts, collateralize the gold for short term forex credit lines, or use it to strengthen confidence in Malawi’s external reserves position,” he said.

He added that through the strategy, the gold would have served as a stabilizing asset while the country explores alternatives for accessing fuel and forex, rather than liquidating at a potential loss.

EDF reported gold purchases totaling 620kgs at a total cost of MK175 billion as of April 9, 2026.

Sovereign Services has announced the long-awaited Definitive Feasibility Study (DFS) results for the world-class Kasiya Rutile-Graphite Project, which has unveiled plenty of benefits for Malawi from the planned rutile-graphite mine.

Kasiya, located in central Malawi, hosts the world’s largest natural rutile deposit and the second largest flake graphite deposit. Both titanium and graphite are officially classified as Critical Minerals by the United States and the European Union.

If market conditions prevail, the mine has the potential to generate revenues of approximately US$700 million per year during its initial life of 25 years with the Malawi Government expected to gain from corporate tax, royalties, payroll taxes and a shareholding arrangement with Sovereign Services in accordance with the country’s laws and the Mining Development Agreement (MDA) that it expects to sign with the company before the onset of mining operations.

The study indicates that the local community will also enormously benefit from the mine through job opportunities, corporate social responsibility projects and a community development agreement that Sovereign Services is expected to sign with the Kasiya Community, allocating a fraction of earnings from the mine to the local community in accordance with the Mines and Minerals Act.

The Study results indicate that at steady-state, Kasiya is forecast to deliver approximately 222 kt of rutile and 275 kt of graphite annually – positioning Sovereign as potentially the world’s largest producer of both natural rutile and natural flake graphite.

The study further confirms the capital investments required for rail, roads, power and water infrastructure which will bring positive economic development to the district and export route to the port of Nacala, with substantial secondary economic opportunities.

Managing Director and CEO Frank Eagar commented: “The completion of this DFS marks a defining milestone for Kasiya and for the global titanium and graphite supply chains. To deliver a DFS of this quality, depth and confidence, rarely achieved by a pre-production company, reflects the calibre of partnerships that Sovereign has assembled around this project: Rio Tinto's technical expertise, alignment with International Finance Corporation (IFC) Performance Standards under our Collaboration Agreement, and offtake interest driven by U.S. and Japanese supply chain security priorities.”

“The successful completion of large-scale field trials, combined with the expertise of our experienced owner’s team and the technical support provided by Rio Tinto, reinforces Kasiya’s potential to be a long-life, low-cost, and reliable source of two critical and globally strategic minerals. Kasiya is not simply a mining project – it is a globally strategic asset.”

The DFS outlines a large-scale, long-life operation that delivers substantial volumes of premium quality natural rutile and graphite while generating significant returns across a range of price scenarios.

Eagar explains that while global primary rutile supply is in structural decline, Kasiya’s natural rutile has demonstrated premium chemical characteristics and suitability across all major end-use applications, with high TiO₂ content, low impurity levels, and favourable particle size distribution – positioning it as a preferred high-purity feedstock within a structurally undersupplied market.

Kasiya’s 222ktpa of natural rutile would represent a significant addition to Western-accessible non pigment rutile supply, directly addressing the structural feedstock deficit facing the US, Japanese and European titanium industries.

Graphite is essential to lithium-ion battery anodes, refractories and a range of advanced industrial applications. China currently dominates global natural graphite production and processing, accounting for approximately 77% of worldwide output and an even larger share of battery-grade anode material. The US has designated graphite as a critical mineral and is actively seeking to diversify supply away from Chinese-controlled sources, including through the US$12 billion Project Vault strategic reserve initiative.

Kasiya’s incremental cost of graphite production is estimated at US$216/t. Eagar explains that based on public disclosures by listed graphite developers with studies at or beyond the pre-feasibility stage, this positions Sovereign as the lowest-cost graphite producer globally, including China.

Compared with single-commodity hard-rock graphite operations, Kasiya benefits from a soft, free dig orebody and a simple processing flowsheet. The majority of operating costs are allocated to the primary rutile stream, enabling the production of high-purity, coarse-flake graphite at materially lower costs.

“Independent testing has confirmed that Kasiya graphite performs exceptionally well as an anode material for lithium-ion batteries, while also meeting specifications for traditional industrial markets such as refractories.”

Dry Mining Method Confirmed

Using real-world data collected from the Pilot Mining, the DFS confirms a dry mechanical mining method using draglines and 100t rigid dump trucks. The soft, free-dig saprolite orebody requires no drilling, blasting, crushing or milling. A two-bench approach (5m top cut, up to 15m bottom cut) keeps the draglines above the water table, eliminating the need for production equipment below groundwater level. This represents a significant de-risking step from the hydro-mining method originally considered in the original Pre-feasibility Study (PFS).

No Conventional Tailings Storage Facility

A major advancement in the DFS is the elimination of the conventional Tailings Storage Facility (TSF) leading to a significant reduction in the mining footprint and providing a flexible, lower-risk tailings management solution. All tailings will be stored via hydraulic co-disposal backfilling of mined-out pits, designed in compliance with the Global Industry Standard on Tailings Management (GISTM), aiming for zero harm to people and the environment. The 50:50 fines-to-sand backfill ratio closely matches the existing soil profile, supporting progressive rehabilitation. This has also reduced the raw water dam wall height from 23m to 20.7m and storage capacity from 16.4 to 11Mm³.

Hydropower-Sourced Grid Electricity

The DFS is based on connection to Malawi’s national hydropower grid via a 132kV overhead line to the Nkhoma substation. Electricity Supply Corporation of Malawi (ESCOM) has confirmed significant grid expansion is underway, including a 400kV Mozambique interconnector (2025) and the 375MW IFC/World Bank-funded Mpatamanga hydropower station (2030). Grid connection delivers substantially lower power costs and a favourable emissions profile.

Processing Flowsheet

Ore will be trucked to the processing plant for scrubbing and screening before entering the Wet Concentration Plant (WCP). The WCP employs a low-energy gravity separation process to produce a Heavy Mineral Concentrate (HMC). The HMC is then fed to the Mineral Separation Plant (MSP), where electrostatic and magnetic separation yield premium-quality rutile (+95% TiO₂), suitable as a direct feedstock for titanium sponge production or use in high-end titanium alloy applications, including aerospace and defence. Graphite-rich concentrate recovered from the spirals is processed in a dedicated flotation plant, producing a high-purity, high-crystallinity, coarse-flake graphite product. Independent testing has confirmed that Kasiya graphite performs exceptionally well as an anode material for lithium-ion batteries and meets specifications for traditional industrial markets such as refractories.

Dual Plant Configuration

The DFS confirms a staged development with two 12Mtpa processing plants – South Plant from Year 1 and North Plant from Year 5 – positioned at the respective resource centres of gravity to minimise haulage distances and costs. The configuration provides operational flexibility and a phased capital profile.

Logistics and Export Infrastructure

Kasiya’s products will be railed directly from a purpose-built dry port at the mine site eastward along the Nacala Logistics Corridor (NLC) to the container terminal at the Port of Nacala on the Indian Ocean. The existing heavy-haul rail line and deep-water port provide a proven, operational export route – a significant infrastructure advantage over comparable undeveloped projects. Product transport cost is estimated at US$117/t product (FOB Nacala).

Kasiya is positioned with access to two rail corridors for the transport of rutile and graphite products to export ports – the NLC and the Sena Rail Line leading to the Port of Beira (the Beira Corridor). The NLC provides the preferred logistics route, offering a direct connection to the deep-water Port of Nacala on the Indian Ocean for exports to global markets. This well-established, operational corridor delivers substantial capital and operating cost advantages for the Project. To access the NLC, Sovereign plans to construct a 6 km rail spur linking the mine site and processing plant directly to the main line, significantly improving the efficiency of both inbound and outbound freight movements relative to road transport alternatives.

Rutile and Graphite Pricing

The DFS adopts a life-of-mine weighted-average realised rutile price of US$1,670/t (real, FOB Nacala), based on an independent TZMI market study. Japanese titanium metal producers OSAKA Titanium Technologies Co., Ltd. (Osaka Titanium) and Toho Titanium Co., Ltd. (Toho Titanium) are expected to drive the growth in rutile demand for titanium manufacturing over the next 10 years. Graphite pricing is based on an independent Benchmark Minerals Intelligence (BMI) price forecast, resulting in a life-of-mine average price of approximately US$1,288/t (FOB Nacala) – effectively in line with the OPFS assumption of US$1,290/t. The graphite basket price is derived from FOB China benchmarks, adjusted for an East Africa premium and weighted by Kasiya’s concentrate flake size distribution.

IFC Performance Standards Integrated into Design

The DFS has been prepared in alignment with IFC Performance Standards, with a comprehensive Environmental and Social Impact Assessment (ESIA) nearing completion and the full suite of environmental and social specialist studies completed. Sovereign’s established on-the-ground social team of 22 core staff and 90-member Community Liaison Team represent a level of social preparedness rarely achieved at DFS stage.

Mining and Rehabilitation Trials – Proven in Practice

Large-scale mining and rehabilitation trials were completed during the DFS period, covering excavation, backfilling, soil remediation and crop establishment. During Pilot Mining, the Company successfully completed dry and hydraulic mining trials, excavating a test pit at Kasiya. The test pit covered the planned area of 120 metres by 110 metres and was excavated to a depth of 20 metres through the weathered ore at Kasiya. Post mining, the rehabilitated pit has achieved maize yields of 5.2 tonnes per hectare within six months of backfilling – over five times the local community average of approximately 1 tonne per hectare. The Pilot Mining validated the progressive rehabilitation approach and confirmed that mined land can be returned to productive agricultural use within one to two years.

Kasiya has been designed to minimise social and environmental impact. The operation will systematically extract and process ore, then progressively backfill and rehabilitate the open pits. The objective of the Project is to minimise disturbance to land resources, while keeping the active mining footprint as small as practically possible.

Human Resources

The project's proximity to Lilongwe offers several benefits, including access to a large pool of professionals and skilled tradespeople. Malawian national employees will be employed predominantly from the Kasiya area and the capital city of Lilongwe.

During construction, Kasiya will employ a total of 2,000 workers, the majority of whom will be employed in the construction of plant and infrastructure. During steady-state operations, Kasiya will employ nearly 1,100 people, the majority of whom will be employed in plant operations. Expatriates make up approximately 9% of the planned workforce. Similar projects in Africa typically witness a flow-on effect for employment in local communities. For every person employed directly in the project, a significant multiplier of people will be employed in indirect jobs supporting the project.

Sovereign has structured training and skills transfer programs covering on-the-job training for full time employees, as well as programs for local graduates and interns. The programs will focus on building skills capacity in the surrounding community. The Company currently has 80 full-time employees and is an equal opportunity employer with a gender diverse workforce. Currently, 30% of Sovereign’s professional Malawian staff and at least 50% of our regular interns are female.

Soils and Rehabilitation Stewardship

Sovereign is committed to ensuring that all mined-out land is appropriately rehabilitated to support sustainable farming practices after closure. The Company has adopted agronomist principles and practices to revitalise local soils. Sovereign will return a good mix of soils as part of the backfilling and introduce carbon and soil nutrients through organic and inorganic inputs.

Local communities will expect that any mined land be restored post mining, such that it is available for agricultural use. This is a foundational commitment made by Sovereign, and all proposed soil remediation and rehabilitation work has been planned to restore the land so that it yields improved agricultural outcomes.

To meet this commitment, the proposed soil remediation and rehabilitation approach is based on sound, tested farming and soil husbandry methods commonly adopted in both small-scale and commercial farming in Malawi. Through Sovereign’s on-site rehabilitation trials, the Company has tested a range of remediation and rehabilitation options over two farming years.

Heavy rare earth minerals potential not included in DFS

Sovereign recovered monazite concentrates from rutile processing circuit with exceptionally elevated levels of heavy rare earths during the study with Dysprosium, Terbium and Yttrium now a potential third revenue stream at minimal incremental cost — all three elements subject to Chinese export restrictions.

A dedicated monazite evaluation program is now underway to assess scale, recovery and economic potential.

I came across this post on LinkedIn by Mr Asimwe Kabunga; a Tanzanian born Entrepreneur who is the Founder and largest shareholder in Australian-listed Lindian Resources, which is preparing to open the Kangankunde Mine poised to become one of the largest and most significant rare earth mines in the World located in Balaka District.

Kemerton’s Cautionary Tale: Why African Downstream Ambitions Need a Reality Check

I am just leaving Investing in African Mining Indaba in Cape Town, and the message from some African governments was clear: "No more raw exports.We want downstream precessing."

It sounds great in a speech. It wins votes. But this week, the world’s largest lithium producer, Albemarle, gave us a $2 billion reality check.

Albemarle just idled the final production line at its Kemerton refinery in Western Australia (the state I have called home for almost 30 years now). This was supposed to be the "gold standard" of Western refining. Despite a lithium price rebound, the company realized it is cheaper to mine ore in Australia and ship it to China for processing than to refine it locally.

If a Tier-1 jurisdiction like Australia, with $17B in incentives, world-class power, and a skilled workforce, cannot make the "refining math" work, African nations must ask: Are we setting ourselves up for a "Refining Trap"?

Here are three hard truths for the "Downstream or Bust" agenda:

1.Mining and Refining are NOT the same business

Mining is about geology and volume. Refining is about chemical engineering, low energy costs, and massive scale. You can be a great miner and a terrible refiner. Forcing them together often kills the profitability of both.

2. "Dig and Ship a badge of honor, not a failure

Australia is a mining leader not because it makes batteries, but because it perfected the "METS" (Mining Equipment, Technology, and Services) sector. Australia exports software, safety systems, and drilling tech. This is higher-margin value-add than a chemical plant and does not require billions in subsidized electricity.

Policy should be a Magnet, not a Mandate.

Banning raw exports, like we have seen in Zimbabwe or Namibia, does not automatically create a refinery. Often, it creates "stranded assets" and kills investment. Capital is cowardly. It goes where it is welcome and stays where it is well-treated.

The African Approach should be:

• Infrastructure first: Do not mandate a refinery if the power grid cannot handle a toaster.

• Focus on Beneficiation: Primary crushing and sorting (getting to 6% concentrate) is a win. It reduces shipping costs and creates jobs without the $2B price tag.

• Build the METS ecosystem: Use the mines to build local engineering and logistics firms. That is the Australian Model" that actually works.

If we want downstream to grow in Africa, it must grow because it is competitive, not because it is compulsory.

My reaction

After finishing reading the article, I remembered the speech by State President His Excellency Professor Arthur Peter Mutharika before announcing the national ban on export of raw minerals. Mutharika hailed the potential of the Kangankunde deposit in helping transforming the economy of Malawi currently in deep waters. Before announcing the ban, he emphasized the importance of value addition for Malawi to scale up benefits from mines for critical minerals such as Kangankunde.

When the ban was announced, I was among those people alert on what reaction would come from Lindian. In this newspaper, we had also published an editorial persuading Lindian to consider setting up a processing plant that will produce the high value rare earth minerals in Malawi in order to scale up benefits from Kangankunde. In the editorial, we gave an example of Mkango Resources pursuing the Songwe Hill Rare Earth Minerals, who are planning to construct a processing plant to produce high value minerals from the rare earths within Malawi.

But Lindian posted a statement onAustralian stock exchange soon after the announcement of the ban  that its plans to export rare earth concentrate from Kangankunde would not be impacted because it would conduct some processing within Malawi to concentrate stage,  it claimed was the highest level possible in Malawi due to lack of required facilities.

This was despite cries over the ban from local Artisanal and Small-scale Miners (ASMs) whose activities were impacted by the ban due to lack of access to beneficiation facilities within Malawi. I questioned myself; was Mutharika only targeting ASMs by issuing the Executive Order? But why did he take time talking about Kangankunde before announcing the ban?

Mr Kabunga’s post, therefore, has opened my eyes that Mkulukutamoyo (as Mutharika is fondly called in political circles)  did not execute the ban to just impact the local poor ASMs, rather some investors want to find ways to escape the trap.

As the President stated in his speech before announcing the ban, the success of Kangankunde will certainly contribute significantly to the economy of Malawi understanding that the deposit has over 100 years mining life with Lindian having pegged the initial life span at 45 years.

The economic changes due to the contributions of mines such as Kangankunde will help sustain the political popularity of the President and his ruling Democratic Progressive Party. Mutharika can indeed not dare risk his popularity just to meet Mr Kabunga’s aspirations though factual and coherent.

Certainly, he clearly remembers that Malawians talked a lot about inadequate benefits from the Kayelekera Uranium Mine in Karonga when during his tenure as President his  late brother Bingu sanctioned the opening of the Mine in 2009 by Australia’s Paladin Resources. I do not think he would dare ride in a similar boat though it might look investor friendly.

The best Mr Kabunga and the Kangankunde Project management team can do is to mobilise  investors  to  consider partnering the Malawi Government in developing the refinery to produce the high value rare earths within Malawi. Neither Mutharika nor any Malawian of good  would dare lose Kangankunde for a song.

As the President said when announcing the ban, it is imperative for Malawi to realise maximum benefits from its mineral resources, and local value addition is the way.

Sovereign Metals has announced an updated Mineral Resource Estimate (MRE) for its flagship Kasiya-Rutile Graphite Project in Lilongwe.

MD and CEO for Sovereign Metals Frank Eagar explains that the updated MRE will serve as the resource base for the Kasiya Definitive Feasibility Study (DFS) mine schedule, replacing the previous April 2023 MRE.

Combined Measured and Indicated rutile Resources have grown 38% to 1,652Mt, now representing 77% of the total Resource base. This material improvement in Resource confidence reflects the extensive infill drilling programs completed and provides a robust foundation for the forthcoming DFS. Importantly, Kasiya has achieved a Measured Resource for the first time, which represents at least the first six years of planned operations.

Eagar comments: “This updated MRE is a significant milestone for Sovereign as we advance Kasiya through the Definitive Feasibility Study. The 32% increase in Measured and Indicated contained rutile, together with our first-ever Measured Resource, reflects both the quality of our geological dataset and the exceptional nature of this deposit. The rigour of the updated resource estimation gives our strategic and commercial partners and us high confidence in the resource base underpinning our potential mine schedule. Kasiya remains unmatched globally as a source of natural rutile, and this MRE update reinforces its potential as a long-life, low-cost supplier to critical global supply chains.”

The updated MRE provides the resource foundation for the upcoming DFS mine schedule and mine optimisation study. The step-up in Measured and Indicated resource confidence is a critical input for the DFS, enabling the Company to present a resource base with the classification level required for bankable project financing and offtake discussions.

Sovereign’s DFS is progressing across all workstreams including mining, processing, infrastructure, environmental and social studies, and commercial arrangements.

MRE EMPHASISES SOVEREIGN’S STRATEGIC SIGNIFICANCE FOR GLOBAL SUPPLY CHAINS

Kasiya is a uniquely diversified source of critical minerals essential to defence, industrial and energy security. The updated MRE demonstrates Kasiya's potential to supply titanium-bearing rutile and graphite for several decades and its position as the world's single most strategically important source of rutile.

Natural rutile is a critical mineral essential to titanium metal production for aerospace, defence and medical applications. According to leading titanium consultants TZ Minerals International Pty Ltd (TZMI), demand for rutile from the titanium metals industry is forecast to grow 3% annually, while global supply is expected to decline by 7% per year over the next decade. The market faces a widening structural deficit.

Natural rutile commands a significant premium over alternative titanium feedstocks due to its superior grade (95%+ TiO₂), lower processing costs, and smaller environmental footprint. With no meaningful domestic production in key consuming nations, Kasiya’s scale and quality position it as the single most strategically important source of natural rutile outside of current producing regions.

With the updated MRE, Kasiya is positioned to address this critical supply gap at a time when new sources of natural rutile are urgently needed.

The graphite resource further enhances Kasiya's strategic value with a second critical mineral. With graphite demand forecast to grow 9% annually across battery and industrial applications (Benchmark Mineral Intelligence), the Project's 20.0Mt contained graphite provides significant exposure to a valuable by-product.

The Malawi Extractives Industry Transparency Initiative (MWEITI) has warned in its 2024/2025 report that the Malawi Government’s raw mineral exportation ban is premature, citing the lack of cutting and polishing industry as a key concern.

The ban, issued by State President Arthur Peter Mutharika in October 2025, prohibits the export of raw minerals such as rare earth elements, gold, uranium, rutile, gemstones, niobium and limestone. The aim is to encourage domestic processing in so doing creating jobs, and capture more value from mineral resources through strict enforcement.

MWEITI says the proposed framework seeks to ensure that minerals extracted in the country undergo processing or value addition locally before being exported. It acknowledges in the report that this policy aligns with MW2063, which recognizes industrialization, job creation, and value chain development as vital drivers of economic transformation.

However, MWEITI observes that stakeholders have expressed mixed reactions about the country’s current processing capacity.

It says while some view the policy as a positive step toward industrialization and employment generation, others warn that insufficient processing infrastructure and limited market access could hinder the growth of Malawi’s mining sector. The report observes that the Multi-Stakeholder Group (MSG) and other industry players support the government’s vision but advocate for a more phased and consultative approach to implementation.

MWEITI states: “The MSG and many other stakeholders were not consulted; this was a presidential directive.”

“Executive Orders are necessary through consultation and must consider the country’s energy availability and the presence of chemical industries.

It also points out that chemical and process engineers need to be locally available to support mineral value addition initiatives.

MWEITI says the MSG plans to continue engaging the Ministry of Mining and other stakeholders to better understand the implications of the policy and to promote transparency and dialogue on developments affecting mineral production, processing, and exports.

Malawi joined the Extractive Industries Transparency Initiative (EITI) in October 2015 and is scheduled to undergo its third independent validation assessment in 2026.

Government is yet to gazette regulations for the ban on exportation of raw minerals which has left small-scale gemstone miners stranded due to lack of processing facilities.

Malawi has only one lapidary for gemstone processing in Mponela, Dowa which is said to be inadequately equipped and located far from other districts rich in gemstones such as Mzimba, Ntcheu and Mangochi.

News that Australian Lindian Resources is opening Kangankunde Mine in Balaka to start commercial production of monazite for rare earth production is good to the ear for Malawians.

With the economic problems rocking the country such as fuel scarcity, unavailability of essential medicine in public hospitals and fertiliser as a result of shortage of foreign exchange, Malawians certainly will be happy to hear about the first rare earth mine opening in the country.

Geological reports make us believe that Kangankunde, which is termed as globally significant and one of the largest rare earth resources globally, can contribute substantial amounts of US Dollars to the country’s coffers.

But as reported in our lead article, the contradicting news that we are getting on the project is worrying. Initially, we published a letter sourced from Lindian Press Release on Australian Stock Exchange where Lindian is listed indicating that MMRA through the former Director General Samuel Sakhuta authorised Lindian to export monazite concentrate to its mixed rare earth concentrate facility in Kazakhstan

This time we have published the original letter sourced from MMRA clarifying that Rift Valley needs to refine the ore locally into rare earth oxides which indicates that the letter from the stock exchange was doctored purpotedly to suite the intentions of Lindian.

The question we have is that, if MMRA advised Lindian to process the monazite to rare earth oxides locally, which is the final stage in the refining process, as contained in the Mining Licence and the Presidential ban on raw minerals exportation as the original MMRA letter reads, why is Lindian still exporting the monazite concentrate for tests at its Kazakhstan factory before commercial mining starts in November this year?

Who is Lindian depending on to continue with the arrangement unfazed despite this clarification from MMRA to process the monazite to rare earth oxides locally? We certainly expected Lindian to announce a change in the scope of the project and consider raising financial resources to develop a local refinery for Kangankunde Project.

With the Australian company proceeding with the project despite such an order from the regulator for the sector, we cannot rule out that there is a strong hand behind Lindian to be such determined.

We cannot rule out involvement of powerful and influential political figures as it has been the case with this mine before. But Malawians including the people of Kangankunde need ample benefits from the mine not usual political and court drama that has characterised the mine before.

Stakeholders in the minerals sector have expressed mixed feelings on government’s interventions to develop the sector which State President Arthur Peter Mutharika highlighted in his State of the Nation Address (SONA) during the official opening of the current sitting of Parliament in Lilongwe.

Mutharika told the house that despite being a potential pillar of economic growth, the mining sector faces numerous challenges including inadequate and limited mineral exploration; legal and regulatory frameworks; and limited capacity to negotiate mining development agreements (MDAS).

He said in order to address some of the challenges, his administration has made a number of interventions including: suspension of issuance of all types of licenses; initiated auditing of the licence registry; and banned the export of raw minerals pending review of the legal and regulatory framework.

Mutharika said: “Mr. Speaker, Sir, in addition, I have directed the Minister of Finance and the Minister responsible for Mining to enhance Malawi’s capacity for negotiating Mining Development Agreements.”

“Going forward, My Government will capacitate the state-owned Malawi Mining Investment Company (MAMICO) to undertake detailed exploration of our mineral deposits.”

“Mr. Speaker, Sir, as I had promised, Government is at an advanced stage of establishing a Sovereign Wealth Fund to ensure that proceeds from mining benefit Malawians.”

Coordinator for Chamber of Mines and Energy Grain Malunga hailed the stated interventions but advised Government to consider issuing licenses to only those companies that have shown capability to progress prospecting projects to mining stage.

Malunga also advised Government to utilize Geological Survey Department (GSD) professionals in pursuing exploration projects.

He said: “I am well informed that the licence registry has been audited including the cadastre map.”

“The Minister will make determination on the recommendations made by Mining Regulatory Authority.”

“MAMICO should hold government equity in mining projects and be actively involved in decision making of those companies. MAMICO should be involved in investing in strategic mining projects that promote infrastructure development and import substitution and they should use existing Geological Survey professionals in advancing strategic exploration projects.”

“The mandate of Geological Survey Department should not be compromised.”

But responding in a separate interview, a Mining Expert, John Nkhoma suggested that suspending the entire issuing of licences was not a good idea and further tipped the Government on the need to only review licenses which are idle.

Nkhoma said: “I think it is not a good idea to suspend wholesome. But I also think there is need to clean the mining registry whereby they should remove all those who are just holding on to land.

“Some have had the licences for many years but with no action on the ground.”

“On capacitating MAMICO to conduct exploration, I do not think MAMICO is the right institution for that. They should concentrate on investment in mining and not in exploration.”

“Think about what MIDCOR (the defunct Malawi Investment and Development Corporation) was doing. I think they are misplacing their mandate.”

MEAL Officer for Natural Resources Justice Network (NRJN) Biswas Ismael said the decision of auditing and suspending issuance of licenses can be welcome if only it is made to identify and rectify some weaknesses or unprocedural actions/activities done during the provision of such licenses.

“MAMICO and GSD are two different entities. The establishment of MAMICO is to spearhead Malawi participation in mining investment.”

“Going by the reasoning by most of the experts in Malawi and others engaged from outside, they have always advised that the government should not invest in mining rather it should play the referee role because of its volatile nature.”

“Financing MAMICO will help it generate data that it can use in its investment operations and can even be selling the same just like the exploration companies have been doing in Malawi .”

“As for the GSD, they can request for the resources to upgrade the information that they hold to attract investors.”

Ishmael said financing the GSD cannot produce value for money considering  how government institutions operate in Malawi.

He said: “Buy a leaf from MUBAS (Malawi University of Business and Applied Sciences) which has been doing exploration while it is an academic institution while we have the GSD.  If that is OK, then with MAMICO the same can be done.”

“Government just needs a clear strategy on how the money should be used and progress should be tracked and policed with clear timelines.”

“MAMICO should not operate like another GSD but rather a company which is doing business.”

GSD was formed recently as a state owned company mandated to hold government equity in mining ventures and invest in projects to increase government benefits from the sector while GSD is an established government department that is mandated to carry out various geological surveys and keep data for mining investors to aceess.

• Lotus commits to improve water management methods to uphold employees’ welfare following water quality audit

• Audit highlighted potential health risks resulting from water quality issues

Lotus Africa, which operates the Kayelekera Uranium Mine in Karonga, says its established water supply and treatment systems and routine water quality monitoring processes are continually being improved, and the health and safety of its employees, the community and environment remain its absolute priority.

Lotus MD Greg Bittar says this in response to a Karonga District Council Water Quality Audit report which has identified gaps in water quality testing, water safety monitoring practices, certification of the water treatment system, and integration of disease surveillance at Kayelekera Uranium Mine.

The report says that mine management should, within seven days, improve the water supply system to meet Malawi’s recommended minimum drinking water standards, which must be verified through microbial water quality testing by an independent accredited laboratory.

The mine currently operates a piped water supply system, abstracting raw water from the Mswanga river, which is conveyed to a water treatment plant. The treatment process includes sedimentation ponds, tanks and clarifiers intended to reduce turbidity, optimize chemical and energy use, and prepare water for disinfection.

Although a complete water treatment system is in place at the mine camp, the report’s key observations include that chlorine dosing appeared to be inadequate or absent, as no chlorine containers or evidence of active chlorination were observed at the treatment plant.

It states that water quality testing is conducted at the mine; however, several critical gaps were identified including that tested parameters included pH, uranium, turbidity, and residual chlorine, but not all recommended parameters were consistently tested.

The report reads: “No microbial (bacteriological) water quality test results were available for Audit. However, Microbiological drinking water quality monitoring (Fecal Coliform, Fecal Streptococci, E.coli and Total coliform types of bacteria and others) is one of the mandatory parameters according to Malawi Standards for drinking water specifications.”

“Review of test results indicated turbidity levels consistently above the recommended limit of 5 Nephelometric Turbidity Units (NTU) for treated drinking water according to Malawi Standards for Drinking Water Specifications (MS214:2013).”

“No residual free chlorine (FRC) was detected in the daily water quality records reviewed. This is outside the acceptable range of 0.20–0.50 mg/L as stipulated in MS214:2013. Historical monitoring data further revealed that FRC levels were consistently zero at all sampling points, indicating that chlorination is either ineffective or not routinely practiced.”

“Uranium exposure through drinking water was identified as a concern. Two samples collected between 17 and 22 February 2026 recorded uranium concentrations of 43 ppb and 35 ppb, exceeding the Malawi standard limit of 30 ppb. Prolonged exposure at these levels may pose long-term health risks to workers.”

The report says although some water safety measures are in place, the following gaps were identified:  A comprehensive Water Safety Plan (WSP) was unavailable and there were no documented schedules for routine maintenance of water treatment infrastructure and there was limited evidence of systematic risk assessment and control measures across the entire water supply chain, from abstraction to point of use.

It cites the other gaps as limited technical capacity to conduct comprehensive water quality testing, particularly microbial analysis; and that routine monitoring focuses primarily on physical and chemical parameters, with no inclusion of microbial water quality testing.

“No documentary evidence was provided to confirm certification or approval of the water treatment system by the Ministry of Water or other relevant authorities for human consumption,” the report reads.

The disease surveillance system at the mine was reviewed, with a focus on diarrhoeal diseases and the report came up with the following findings; health records confirmed reported cases of diarrhoea among workers. And medical registers documented 28 cases of gastroenteritis during January and February 2026.

“Approximately 80% of the workforce comprises non-resident workers operating under a MASM arrangement. As a result, gastroenteritis data for non-resident workers could not be established, limiting the ability to determine the true burden of diarrhoeal diseases among the entire workforce,” the report reads.

But Bittar points out in his response that the World Health Organization (WHO) indicates a provisional guideline value of 30 micrograms per litre (30ppb) U in potable water, but also provides for a tolerable daily intake of 60ppb (World Health Organization Guidelines for Drinking-Water Quality 2022).

 Bittar says: “The uranium exposure identified on the two February dates highlighted in the Preliminary Correspondence were 43ppb and 35 ppb. We note that in the last 3 weeks, uranium levels have been below 20ppb.”

“Bottled drinking water is and will continue to be provided to all site personnel until further notice.”

He says increased chlorine dosing has been adopted and routine monitoring implemented for physical and chemical parameters, as well as microbial testing. In addition, Lotus is assessing further improvements for water quality management, including the installation of ultraviolet treatment.

“Additional improvement steps will identify opportunities to strengthen our engineering standards and practices, and to provide practical recommendations in relation to any potential operational issues.” says Bittar.

Lotus supports workers through the provision of international standard medical care and on-site medical facilities.  

ASX-listed Tusker Minerals has announced the completion of its maiden systematic exploration program at the Mzimba Rutile Project in northern Malawi, a program which was designed to evaluate the project's potential to host large-scale residual rutile mineralisation.

In a press statement, Tusker CEO Cliff Fitzhenry said the exploration work was completed on time and within budget, a development which marks a material step in the Company's strategy of building a portfolio of high-quality African rutile assets.

Fitzhenry commented: "The successful completion of this program marks an important milestone for Tusker and represents the first modern, systematic exploration program specifically targeting rutile at Mzimba.”

“While assay results remain pending, the scale and consistency of geological indicators observed throughout the program are highly encouraging and support our view that Mzimba has the potential to emerge as a significant rutile district.”

“Our team has been particularly encouraged by the numerous positive field indications observed throughout the program.”

“We identified the key geological ingredients associated with residual rutile systems, including well-developed ferruginous pedolith, extensive mottled clay horizons and deeply weathered saprolitic profiles.”

Fitzhenry also said the company observed visible heavy minerals and rutile grains both on surface and within panned samples.

He said: “Importantly, these indicators have been identified across a large project area, consistent with a geological setting where residual rutile systems can develop.”

“These indicators have been observed across an area of approximately 710km², the majority of which remains largely underexplored for rutile.”

“The ability to process samples using our own in-country infrastructure and technical workflows in Malawi provides us with a cost-effective and efficient pathway to rapidly assess the project's mineral assemblage and rutile potential.”

He explained that the program focused on assessing the distribution of titanium mineralisation, characterising weathering profiles and identifying geological conditions associated with residual rutile deposits.

Fitzhenry said the assessment included: mapping and reconnaissance exploration across priority target areas to better define the distribution of titanium mineralisation, characterise the weathering profile, identify additional target zones and refine the geological model; excavation of six exploration pits and collection of 31 channel samples from pit sidewalls to assess rutile potential throughout the complete weathering profile and provide geological and grade continuity information in near-surface saprolite and lateritic material and: project-wide, systematic and wide- spaced regional soil sampling campaign to define and extend high-grade rutile zones and prioritise future auger drilling activities.

He said the combination of widespread titanium mineralisation, extensive residual weathering profiles and visible rutile grains observed across multiple target areas provides encouragement that rutile enrichment may occur over a much broader area than previously recognised.

Fitzhenry said “These observations support the Company's view that Mzimba hosts many of the geological characteristics associated with large-scale residual rutile systems.”

“This first phase program builds on the Company's March 2026 discovery announcement, which identified titanium mineralisation hosted predominantly by rutile across multiple areas of the project.”

“The discovery sampling covered only approximately 50km² (around 7% of the total licence package) highlighting the significant exploration upside that remains across the broader project area,” he said.

The Mzimba Rutile Project forms part of Tusker's strategy of building a portfolio of high-quality titanium and heavy mineral sands assets across Africa.

He said together with the Company's Central Rutile Project and Douala Basin HMS Project in Cameroon, Mzimba provides exposure to multiple highly prospective titanium-bearing mineral systems at a time when global demand for titanium feedstocks continues to strengthen, driven by pigments, aerospace applications, advanced manufacturing and emerging clean energy technologies.

Geologically, the project lies within the Mesoproterozoic Irumide Belt, which extends from eastern Zambia into northern and central Malawi.

The belt comprises of high-grade metamorphic basement rocks including orthogneiss, paragneiss, schist and granulite, intruded by granitic bodies and locally associated with pegmatite swarms that have historically been mined for gemstones such as beryl.