24/05/2025
SPEECH MADE BY PRESIDENT OF MKANGO RESOURCES MR ALEX LEMON AT MALAWI MINING INVESTMENT FORUM ON 28 APRIL 2025
Muli Bawnji colleagues, friends and guests my name is Alex Lemon and I am a founding director and President of Mkango Resources, please take it for granted that all protocols are observed and that my talk will be short as I am aware lunch time has arrived!
Mkango is listed on the UK and Canadian stock exchange. Our corporate strategy in Malawi is to develop and mine new sustainable sources of rare earths especially neodymium, praseodymium, dysprosium and terbium which are rare earths used to make high strength magnets that are needed to supply the accelerating demand from electric vehicles, robotics, wind turbines and other clean energy technologies.
Malawi is blessed with world class rare earth deposits and we have been exploring and are now developing a very exciting mining project in Phalombe. As you may be aware this is the Songwe Rare Earth Project.
The theme for this Mining Investment Forum describes very well the Songwe Rare Earth Project, as the Songwe Rare Earth Mine will be a Game Changer which will undoubtedly be “Advancing Malawi’s Mining Agenda in an Evolving Global Industry”
We are at a pivotal time for the Songwe Hill rare earth mine development. As the global demand for critical materials continues to rise, the rare earths supply chain faces unprecedented pressure to meet the needs of key industries such as renewable energy, electric vehicles, robotics and other advanced technologies. This demand underscores the urgent need to develop new Rare Earth supply chains into international markets . Today, the supply of rare earths is heavily concentrated in a few regions, creating vulnerabilities that can disrupt the entire international value chain. Malawi has world class rare earth deposits which will help build resilience and ensure a stable world wide supply, it is imperative for Malawi that we get the rare earth deposits developed and mines built as soon as possible.
Songwe Hill is one of the few rare earths projects in the world to have completed a Definitive Feasibility Study as well as having a fully permitted ESHIA to World Bank IFC standards, with an expected life of mine of 18 years, it will produce a high value purified mixed rare earth carbonate, the mineral beneficiation and processing will be taking place in Malawi and we are going to build a Hydro-metallurgical plant on site to ensure that value addition happens here in Malawi. This future mining project will be a game changer for the Nation of Malawi.
The Songwe Mining operation will help transform Malawi, we expect it to contribute between 1% to 2% of Malawi’s future GDP and will provide a source of Forex into the country from the projects high value exports. Clearly If individual mining projects that are being planned and being constructed can produce individually over 1% of the country’s GDP then it will be possible for the future mining sector to eventually contribute to over 15% of the country’s GDP thereby attaining the goals and objectives of the ATM (Agriculture, Tourism and Mining) Strategy. This will help transform the economy of the nation in the medium to long term.
We have completed exploration and now are moving into the Front End Engineering, Design and value engineering / optimisation phase that will de-risk the construction of the Mine, processing and HydroMet plant and needs to be completed prior to starting construction. For example an 87 km high voltage power line needs to be designed and constructed from Blantyre to the Songwe site, roads and other infrastructure will need to be upgraded. The detailed engineering studies will take approximately 9 months to complete and engineering optimisation studies are already taking place in Australia and South Africa with leading engineering groups this has been funded by the European Union via an equity investment directly in Mkango from the EIT. Following completion of the FEED we expect mine construction will take 18 to 24 months and will employ ~1,200 people per annum during the construction phase and ~ 500 people per annum during the 18 year life of mine, with an estimated ~10,000 indirect job created in the region
The communities in which we are working are very supportive and very much looking forward to the future opening of the mining operation. We are very much visible in the community as we continue to engage with each other through various voluntary Corporate Social Responsibility projects such as secondary school and university scholarships for the top achieving primary school students at 3 schools in our area; we have worked with a local CSO BONGO where they have painted 24 classrooms at the 3 primary schools to foster an enjoyable learning environment – this is a project known as Happy classrooms. We believe education is key to transforming the lives of the surrounding community and Malawi at large. Currently 57 primary students have been given scholarships into secondary schools - with their fees fully paid. To date 11 of these students have got into it to University and I am very pleased to inform you that our first university student has graduated in IT/Computer studies at DMI University in Mangochi. When this educational assistance is provided during the exploration stages of the project it means there are greater possibilities for local skills and local employment when the mine starts to be constructed and begins operating. In addition we have drilled numerous water boreholes, introduced a school feeding program amongst other initiatives. Needless to say our community is a key stakeholder for us. During operations 0.45% of revenue will be provided through our community development agreement.
Institutional strengthening is very important in mining projects such as ours. We do not work alone we have key symbiotic relationships with many relevant institutions. For example Mkango Resources is a member of The Chamber of Mines & Energy. We also participate actively in MWEITI - Malawi Extractive Industries Transparency Initiative. These institutions are there to ensure that mining becomes a game-changer for Malawi in a transparent manner that will give the nation and company credibility locally and internationally.
Finally I am very pleased to announce that we are advancing our plans to list the Songwe Rare Earth mine on the United States NASDAQ stock exchange in New York. This is a stock exchange where technology companies such as Apple and Microsoft are listed. I believe the Songwe Rare Earth Project will be the first Malawian project / business to list on the NASDAQ stock exchange in the USA. We will be flying the flag of Malawi proudly in the USA. We are also going to list the company on the Malawi Stock Exchange to increase local content and enable Malawian Institutional and private investors to invest in the Songwe Rare Earth Mine.
I would like to thank Malawi’s Development partners for their continued support, advice and investment into the Nation of Malawi’s Natural Resources Sector particulary thanking the United States of America, EU, UK & Canadian governments.
But finally I would like to thank the Government of Malawi, Presidential Delivery Unit, Ministry of Mining, Finance, Jusctice and all the other ministries for their continued support and congratulate the Ministry of Mines for organizing events such as this that have the clear objective of Advancing Malawi’s Mining Agenda in an evolving Global Industry.
Zikomo Kwambiri