
The Mining and Minerals Regulatory Authority (MMRA) says it will not hesitate to grant a large-scale mining licence to Australia’s Lindian Resources for Kangankunde Rare Earth tenement in Balaka if the technical data submitted by the Company qualifies the project under the existing law governing the sector. the Mines and Minerals Act 2023.
MMRA says this in a letter responding to the Centre for Democracy and Economic Development Initiative (CBEDI) Executive Director Silvester Namiwa who wrote the Authority demanding that it grants a large-scale mining licence to the Australian firm which is currently running the project using a medium scale mining licence.
The Mines and Minerals Act mandates a large-scale mining licence operator to sign a Mining Development Agreement (MDA) with government that specifies benefits for the mining company and the host nation from a mine. Government has the mandate to acquire minority shareholding in a large scale mine based on the MDA. Such attributes do not apply to a medium scale mining licence.
MMRA explains that Lindian is using the licence that it acquired from a local company Rift Valley Resources whose activities that time did not apply for a large-scale mining licence.
It states: “The Authority strongly refutes any suggestions that licensing decisions were made through secret agreements for the benefit of certain individuals. Should the project ultimately qualify, or be required to hold a large-scale mining licence, the full suite of protections and benefits available under the Act, Community Development Agreements and enhanced reporting obligations will apply.”
The Authority explains that based on the Law any upgrade from medium to large scale mining licence will require a fresh application from the Company for a large-scale mining licence, submission of full feasibility study meeting the requirements stated in the Act, revised environmental impact assessments and approvals and a government ownership interest agreement.