Mining Review Malawi

29/08/2025

29/08/2025

ASX-listed Iluka Resources has entered into an agreement with Lindian Resources for the long-term supply of rare earth concentrate from its Kangankunde project in Malawi’s Balaka District.

28/08/2025

22/08/2025

16/08/2025

Abolish development agreements to let all mining companies operate in accordance with Malawi laws

Followers of our publication are aware that we have been in touch with various stakeholders in the minerals sector to analyse Mining Development Agreements (MDAs) that the Malawi Government has been signing with investors for various projects.

In our main article for this edition, we have analysed the MDA which Lancaster Exploration, a subsidiary of UK firm Mkango Resources, signed with the Government for a planned project to mine rare earths at Songwe Hill in Phalombe.

As reported in our lead article; going through the MDA, it is clear that the mining company is respecting the Malawi laws having committed to conduct operations and pay taxes and royalties as prescribed in the laws, and has not raised any issues of tax exemptions that dwindle amounts of revenue collected by government.

The MDA also states that the Company will pay according to the Malawi tax legislation a royalty of 5% and Capital Gains taxes which shall be charged where a gain has been realised by the company.

The agreement also gives the State the right to acquire up to 10% free equity in the mine, which will permit the State to exercise 10% of the voting rights for the mining project.

The amended Mines and Minerals Act of 2019, which we assume was in place when the MDA was being drafted, gives the Malawi Government the right acquire 10% free equity in a large scale mine.

We, therefore, commend Mkango Resources for clearly showing that they are ready to carry out the mining business in accordance with the laws of Malawi.

We agree with the Coordinator for the Natural Resources Justice Network (NRJN) Kennedy Rashid in the article that if the agreement can be adhered to, it gives assurance to the country in retaining a direct share in Songwe Hill revenues.

As Rashid says, the onus is now on the government to conduct strict monitoring to ensure that the commitments made in the agreement, that are also a reflection of the country’s laws governing mining activities, are fulfilled.

To call a spade by its name, with this agreement, it is clear that foreigner investors can conduct mining activities without signing MDAs just like local firms are doing.

We, therefore, call on the Government to abolish signing of MDAs with foreign investors to level the playing field by letting all companies operate according the laws!!!!!

16/08/2025

Malawi needs to export refined mineral products from Kangankunde not mere concentrate

It is good news that Malawi’s rare earth minerals continue to attract interest from global investors with ASX-listed Iluka Resources penning a deal with another Aussie firm Lindian Resources for the later to export monazite concentrate from its Kangankunde Rare Earth Project in Balaka to process at Iluka’s refinery in Western Australia.

As reported in our article on Page 12, Lindian will supply Iluka with 6ktpa of rare earth concentrate for 15 years. This material would be complimentary feedstock for Iluka’s Eneabba rare earths refinery, and would represent approximately 10% of the refinery’s capacity.

Eneabba will be Australia’s first fully integrated rare earths refinery to produce separated light and heavy rare earth oxides.

The refinery is currently under construction; scheduled for commissioning in 2027; and being built through a strategic partnership between Iluka and the Australian Government.

To support Lindian’s development of Kangankunde, Iluka has entered into a US$20-million loan facility agreement with a five-year term.

We agree with Lindian Executive Chairman Robert Martin who describes the binding strategic partnership with Iluka as a defining milestone for Lindian providing a credible pathway forward for the development of the world class Kangankunde Project, while delivering long-term contracted revenue.

However, we feel there is need for increased local participation in developing this huge world-class rare earth deposit understanding the importance of this resource to the Malawi economy currently struggling due to lack of foreign exchange that the country can realise from the export of critical minerals such as rare earths.

As reported in the article, the Australian Government is taking part in the arrangement as a strategic partner of Iluka in building the refinery. This is a typical example of good mining governance in light of the new energy revolution.

Malawi government needs to also scale up its involvement in development of the huge Kangankunde deposit by, among other things, joining hands with the private sector to construct a refinery to produce high value light and heavy rare earths from deposits within Malawi just like what Australian Government is doing.

The talk on export of finished products including mining products should not just be in political party manifestos while on the ground unprocessed and semi-processed minerals are finding their way out of the country.

Malawi needs to export refined rare earth minerals from Kangankunde and all its deposits not mere concentrate! Local value addition is key to economic transformation through mining!

15/08/2025

Mining & Trade Review mid-August 2025 edition now out. Contact +265888356536 or 993252656 for subscription and advertising enquiries

12/08/2025

The Kayelekera Uranium Mine in Karonga, operated by Lotus Resources Limited has officially reopened today, a move expected to boost Malawi’s economy through increased exports, job creation and community development.

Speaking at the opening ceremony, President Dr Lazarus Chakwera hailed the reopening, thanking Lotus Resources for completing preparations on Schedule.

He noted that the project comes at a time when global uranium demand is rising, driven by the shift towards nuclear energy as clean power source.

However, Chakwera cautioned against political interference, describing the mine’s previous closure as harmful to national progress.

“This mine was disturbed by political views and the closure was a mistake. We must not allow lies and political motives to disrupt development again,”he said.
He also urged his government to maintain tight security to prevent smuggling of high value minerals.

As part of the event, Lotus made community contributions, K10 Million to Women in Mining and K20 Million to Karonga Football Club, reflecting its commitment to corporate social responsibility.
By Modester Mwalija

04/08/2025

16/07/2025