Mining & Trade News

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.

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