08/08/2026
Chamber urges Government to act on Kangankunde saga
By Marcel Chimwala and Chisomo Phiri
The Chamber of Mines and Energy in Malawi has urged the Ministry of Mining to urgently act decisively on the Kangankunde issue in order to do away with negative publicity that is affecting Malawi as a mining investment destination.
Speaker of Parliament Sameer Suleman and a number of Parliamentarians from both ruling and opposition camps this week called for the suspension of activities at the Kangankunde Mine in Balaka to pave way for investigations on how tenement holder ASX-listed Lindian Resources, operating as locally-owned Rift Valley Resources, is using a medium scale mining licence to run the world class rare earth mine.
Parliament has, meanwhile, ordered a fresh investigation into the Project following the concerns over its mining licence, regulatory compliance, mineral exports and documentation.
But Malunga said in taking a long time to make a decision on the issue, Malawi is scaring global mining investors in so doing negatively impacting other projects.
โ Government needs to act now and close the chapter. What is so special about the Company that Government is failing to address in so doing giving Malawiโs mining sector so much negative publicity that is scaring investors,โ Malunga said.
Suleman ordered the fresh investigation after Members of Parliament (MPs) raised questions about the operations of the project following presentation of a report by the Parliamentary Committee on Natural Resources, Energy and Climate Change after its oversight visit to the mine.
The committee flagged gaps in documentation, uncertainties surrounding the export of mineral samples and questions over the projectโs licensing status.
The committee said the project is currently operating under a medium-scale mining licence despite observations suggesting that its scale of operations could qualify it for a large-scale mining licence.
Lilongwe Nyanja Constituency legislator Steve Baba Malondera called for the government to halt operations at the site until all issues raised by the committee are resolved.
Malondera also called for a nationwide review of mining licences, arguing that stronger regulation would restore order in the sector and enable Malawi to derive greater economic benefits from its mineral resources.
In response, Minister of Mining Thoko Tembo told Parliament that government inspections had not found evidence of illegal mining or unauthorized exportation of minerals from Kangankunde.
Tembo said mineral samples taken out of the project had received official approval and were exported for metallurgical testing, laboratory analysis and other technical purposes in accordance with mining regulations.
He said government will, nevertheless, strengthen oversight of the project through the Mining and Minerals Regulatory Authority (MMRA), the Ministry of Mining and other relevant agencies to ensure compliance with licence conditions and environmental standards.
โNo investor is above the law. Government will ensure that regulatory decisions are made fairly, transparently and objectively, based on the law and verified technical evidence,โ said Tembo.
The minister also disclosed that enforcement proceedings had commenced against Rift Valley Resource Developments Limited over outstanding compliance requirements.
He said the company failed to submit some technical and operational documents required by the authorities and is at risk of facing sanctions, including suspension or cancellation of its mineral rights, if it fails to comply with the Mines and Minerals Act, 2023.
Tembo said government is also reviewing whether the projectโs current licence category is appropriate, taking into account factors such as production capacity, investment and the size of its workforce.
While acknowledging governance challenges in the mining sector, Tembo assured parliament that government will ensure the Kangankunde project is developed legally and transparently while protecting Malawiโs interests.
But Minister of Justice and Constitutional Affairs Charles Mhango cautioned against calls for arbitrary suspension of mining investments, saying government must balance protection of national interests with respect for the Constitution and the rights of legitimate investors.
Mhango said government cannot simply suspend activities at the Kangankunde project without a lawful basis, as doing so can expose Malawi to legal challenges and compensation claims.
He said the governmentโs responsibility is to ensure that mining investors complied with Malawiโs laws while also providing a stable and predictable investment environment.
โWe are not here to scare investors. We are here to provide a conducive environment for investors,โ said Mhango.