04/10/2026
Pressure mounts on Government to sign MDA for Kangankunde
By Chisomo PHIRI
Pressure is mounting on the Malawi Government to clearly explain the status of negotiations for a Mining Development Agreement (MDA) for the Kangankunde rare earths project in Balaka, with concerns growing over whether the country has adequately secured its interests before commercial-scale mineral exports begin next month as planned.
The concerns have come in the wake of media reports that Government and Lindian Resources started negotiations for a mining deal for Kangankunde only to go silent on the progress later.
In January 2025, the Ministry of Mining and Lindian confirmed to the local media that negotiations had started to sign the Kangankunde MDA, with experts urging authorities to bargain for the best possible deal for Malawi.
“The MDA discussions commenced with the Malawi Government,” the then Lindian CEO Alwyn Vorster was quoted by The Nation as saying with the then Principal Secretary for the Ministry of Mining Joseph Mkandawire confirming the discussions.
But unlike major projects such as Mkango’s Songwe Hill rare earths, Lotus Resources’ Kayelekera uranium and Globe Metals’ Kanyika niobium projects, which signed MDAs,, Lindian is proceeding with Kangankunde without signing the deal with the developers saying the over US$1-billion project is being pursued with a medium-scale mining licence hence does not require a MDA.
Commenting on the issue, Natural Resources Justice Network (NRJN) Programmes Officer Joy Chabwera said the Government should explain the legal and fiscal arrangements currently governing the project and, if a MDA has not been concluded, clarify what measures are in place to protect Malawi’s interests.
Chabwera said the earlier negotiations raise important questions about transparency and the protection of Malawi’s national interests, particularly as the project moves towards commercial production and exports.
“Ultimately, the question is simple: before Malawi's mineral wealth starts leaving the country on a commercial scale, do Malawians have sufficient transparency about the terms under which that wealth is being developed and the benefits Malawi will receive?” said Chabwera.
He questioned the whereabouts of the outcome of the earlier negotiations, particularly as the project moves towards commercial production and exports.
“The question now is what became of those negotiations, particularly as the project moves towards commercial production and exports,” he said.
However, Chabwera cautioned against concluding that the absence of an MDA automatically means the company’s exports will be unlawful.
According to Chabwera, whether Lindian can legally commence or undertake exports depends on the applicable mining licence, statutory approvals, licence conditions and other requirements under Malawi’s legal and regulatory framework.
“If government has been negotiating a MDA or other mining agreement intended to define the benefits accruing to Malawi, there should be clarity on the status and outcome of those negotiations,” said Chabwera.
He said Malawians should be able to understand, subject to legitimate confidentiality and legal limitations, what the country has secured in terms of revenues, taxation, local procurement and employment, community benefits, environmental obligations, value addition and other national interests.
“This is not about opposing investment. Malawi needs responsible investment in the mining sector. But responsible investment must be accompanied by transparency, accountability, legal certainty and a fair return for the people of Malawi,” said Chabwera.
Centre for Human Rights Education, Advice and Assistance (CHERAA) Executive Director Victor Mhango said the development of Kangankunde must be undertaken in a manner that protects Malawi’s interests and ensures that the country and its people derive fair and tangible benefits from the resource.
Mhango said a MDA is an important instrument for setting out the respective obligations of an investor and Government, including issues relating to economic benefits, local participation, employment, environmental protection and other national interests.
“It is therefore important that the Government provides clarity on the status of the MDA negotiations and the legal basis under which commercial exports can proceed in the absence of a concluded agreement,” said Mhango.
He stressed that CHERAA supports investment in Malawi’s mining sector, but said such investment must be transparent, accountable and conducted within the applicable legal and regulatory framework.
Mhango stressed that Malawians deserve to know what benefits the country will receive from the exploitation and export of its mineral resources.
Seasoned geologist Ignatius Kamwanje said the issues surrounding Lindian Resources and the Kangankunde project raise broader questions about the strength of Malawi’s resource governance system.
Kamwanje said there appears to be a challenge in balancing investor rights under the current laws against public expectations for transparency and greater national benefit from mineral resources.
He said part of the controversy stems from the legal framework governing different categories of mining licences and the circumstances under which a MDA is required.
According to Kamwanje, under Malawi’s current mining laws, the legal requirement for a MDA varies depending on the type of mining licence held by an operator.
He said Lindian operates through its local subsidiary, Rift Valley Resource Developments, using a medium-scale mining licence, a licence category that does not legally require an operator to enter into a MDA in the same way as large-scale mining operations.
Kamwanje said medium-scale operators are also not legally required under the same framework to provide free equity to Government or enter into a Community Development Agreement (CDA).
Kamwenje said one possibility is that Lindian should eventually be upgraded to a large-scale mining operation, although suggestions that this should happen during Phase Two of the company’s operations have not yet been conclusively established.
He, however, wondered why although Malawi has restrictions on the export of raw minerals, Lindian has reportedly received an exemption, a development that has generated further debate over whether the country is obtaining sufficient value from the resource.
“Initial plans were that the mineral will be processed locally into rare earth oxide, whereas the current plan involves the export of raw monazite concentrate,” Kamwanje observed.
State President Arthur Peter Mutharika issued a ban against exportation of raw minerals but Lindian is mobilising to start commercial exportation of raw monazite concentrate despite the ban.
