Mining & Trade News

The Malawi Government took advantage of the 2025 International Mining Investment Forum it hosted in Lilongwe to market a number of investment opportunities it is offering in the mining sector through its newly formed Malawi Mining Investment Company (MAMICO).

“The once fast asleep geological giant of Malawi is now not only awake and alert, but also very thirsty and hungry for genuine investments,” said MAMICO CEO Professor Dr Leonard Kalindekafe.

Kalindekafe explained that MAMICO is offering investment opportunities through strategic partnerships in its planned projects across the whole mining value chain.

Mamico’s planned projects are in areas of gold buying and selling, gold exploration, development of state of the art geological laboratory, gemstone buying and selling and jewelry factory, lime and cement factory, rutile and graphite mining, rare earths mining, niobium mining, uranium mining, oil and gas exploration, quarry stone, lithium, nickel, copper and pyrite.

Kalindekafe said: “This is Malawi’s Moment. Malawi, through MAMICO, is not just offering world class mineral resources, the country is also offering strategic partnerships, excellent, modernized, easily accessible and reliable geological data, stability, a strategic location, and commitment to responsible mining practices.”

“As the world is busy banging its heads trying to find secure and sustainable mineral supplies, Malawi’s sleeping geological giant has awakened, her untapped mineral riches are shining brighter than ever.”

In his remarks during the opening ceremony, State President Dr Lazarus Chakwera said the mining sector alone has everything needed for Malawi to achieve upper-middle income economic status  as evidenced by the value of minerals that the nation has and strong interest from investors.

Chakwera said for the nation to realize the benefits, there is a need to solve three economic transformation puzzles in order to turn minerals into inclusive wealth. He said the three puzzles include: strong regulatory framework made up of a combination of strong institutions; negotiation of smart mining agreements that work for the developmental goals of Malawi and; and investment partnerships.

Chakwera said; “A strong regulatory framework in mining ensures that there is equal opportunity for genuine investors, a fair and level playing field for stakeholders, while leaving no room for illegal mining or environmental degradation. "

“This is why for the first time in Malawi’s history, my administration has put in place a new mining law that establishes the Mining Authority for this purpose.”

“Even if there are minerals deep in the remotest parts of the forests of Malawi, no one should be able to touch them without the Mining Authority or Ministry knowing about it, or be able to do so without a licence, or without following the laws of Malawi.”

Chakwera also stressed that the big part of having strong regulatory framework is ensuring that there is public transparency.

On negotiation puzzle, Chakwera condemned the tendency of entrusting the negotiation process to people who have no expertise and global experience in the best structure for these Mining Development Agreements (MDAs).

  In his speech, Minister of Mining Dr. Ken Zikhale Ng’oma said despite numerous gains there are challenges being faced by the sector including mistakes in philosophical, ecological and economic missteps that force the nation to overly rely on agriculture leaving vast mineral wealth untouched.

Ng’oma said; “We are now correcting these mistakes. Mining is no longer an afterthought; it is central to our national development agenda.”

“Contracts will be properly negotiated to ensure Malawi reaps maximum benefits and while we focus on low-hanging fruits, we are equally laying the foundation for long-term value creation.”

“We are investing in exploration, infrastructure, beneficiation, and local content to ensure that mining contributes meaningfully to Malawi’s economy — not just today, but for generations to come.”

“We are determined and keen to get to a day, soon, when our industry can turn the graphite at Kasiya into pencils and batteries and such other things, a day when we will have the ability to polish all our gemstones and produce high quality jewellery, lime for the construction industry and the agriculture sector, copper into screws and decorations, monazite into magnets.  

Ng’oma said that his dream is ensure that mining goes beyond extraction and that policies put much emphasis on beneficiation or value addition; environmental and social governance compliance and; inclusive development that must recognise women and youth as key players.  

President for Chamber of Mines and Energy Maxwell Jomo Kazako pledged to work in partnership with Artisanal and Small-scale Miners (ASMs) in the country recognising their vital role in small scale operations in broader mining ecosystems. Kazako said their commitment comes in to proactively regulate compliance ensuring that Malawi remains free from illegal mining activities.  

However, Kazako outlined some of the challenges faced by the Chamber which includes: capacity building gaps; licensing delays; policy inconsistencies, bureaucratic hurdles, and conflicts at both local and national levels.

He said: “To address these challenges decisively, the Chamber has developed a comprehensive action plan with key initiatives, such as: strengthening grassroots engagement, providing technical support to both large-scale and small-scale miners, forging strategic regional and international partnerships, advocating for meaningful and timely policy reforms, and boosting active member participation.”

“Additionally, we are prioritizing the establishment of a sustainable funding model to ensure the Chamber's long-term resilience and impact.

Rumphi based Mchenga Coal Mine says it is working on plans to hike monthly coal production from the current 3000 tonnes to 5000 tonnes once it fully opens a planned new mine at the site.

In an interview with Mining and Trade Review, Safety, Health and Environmental Officer for Mchenga Adams Blessings Kasambara explained that plans are underway to open a new mine that will sink 200 meters deep, which is expected scale up production to 400 metric tonnes per day.

Mchenga Coal Mine which currently employs about 283 people from within the communities surrounding the mine, currently, supplies coal to the local market but Kasambara said the Company is currently considering penetrating the export market and has established business relations with Rwandan companies.

Kasambara said: “The plan of scaling up our production is there, but the challenge remains the foreign exchange shortage.”

“Forex has been our main challenge as we are failing to import some of the equipment to increase production."

On Corporate Social Responsibility (CSR), Kasamabara said Mchenga is currently helping Jalawe Community Day Secondary School in construction of dining hall and kitchen unit by supplying sand, quarry and machines to the contractor.

Mchenga’s other CSR programmes in the area include provision of free health facilities and drugs to surrounding communities; free portable water and; construction of school blocks and teachers’ houses; chief’s houses; playing fields; and renovation of roads.

The Mine continues to provide its employees and their families with social amenities including a clinic, a primary school, kindergarten, a subsidized shop, sporting facilities, electricity, a club with pay television (DSTV), a maize mill and portable water.

It also provides internship opportunities to students from tertiary instituions and in-house training in Mining Engineering.

Considering issues of environmental rehabilitation, the company approximately planted 2000 tree seedlings of mibawa and 300 of mahagony in eroded and abandoned areas.

Coal at Mchenga Mine is extracted using Room and Pillar method, which involves the application of underground working variation of Board and Pillar configurations, a competitive method in ground control measures for stability and safety.

Muli Bwanji 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 exchanges. 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.

Local mineral exploration firm, Green Exploration, has expressed concern over lack of awareness on mining issues by communities within the company’s exploration areas describing it as the main challenge being faced by the company in its various license areas.

Exploration Geologist for the company Patrick Nansongole said in an interview at this year’s Malawi Mining Investment Forum in Lilongwe that most communities have no or little idea on the stages of mining projects as evidenced by their unrealistic demands for corporate social responsibility projects.

Nansongole said it is unfortunate to see some communities demanding development projects in the name of Corporate Social Responsibility (CSR) even though the project is at infant stage.

He said: “Most of the locals do not understand what exploration is. You go into the communities and they expect a lot of things as if you are mining.”

“Mining is a business indeed whereby at the end of the day you get something. But with exploration is different as it is more of investing in reserch.”

“You make a plan to travel to different sites, hire local people, and we are just spending, we are not getting anything from that.”

“Surprisingly, the community starts making demands which at some point tells us that there is a knowledge gap as they do not understand what exploration is and what it involves.”

Commenting on the future of mining in the country, Nansongole said the country has huge potential of developing through mining sector but what is needed is to scale up exploration work. Nansongole said many mineral potential sites in the country remain underexplored and conducting detailed exploration on such sites can help in boosting the mineral potential of the country.  

He said: “Having conducted exploration for three years and from the historical data from past exploration, indeed mining is viable in the country.”

“Malawi is very rich but the only challenge is that many areas are underexplored. For example, the copper ore that we have found in the north is just extension of copper belt of Zambia but the majority is not aware of that.”

“What should be done is more exploration. Much of our land is green area where none of the exploration has been done.”

Meanwhile, Green Exploration which is a subsidiary of ASX-listed DY6 Metals is carrying exploration works in all its four license areas including: The Machinga Rare Earth and Niobium Project which is ~40km East of Lindian’s (ASX: LIN) “Kangankunde”; the Salambidwe Rare Earth Project with limited previous exploration; the Ngala Hill Project located 35 km south-southwest of Blantyre in southern Malawi and; the Tundulu Project known with carbonatite ring complex with abundant REE mineralisation.

Recently, the Company announced that a review of historical drilling and trenching at the Tundulu Rare Earth and Phosphate project, has uncovered high-grade gallium mineralisation which has been identified from surface.

According to the announcement, a historical diamond and RC drilling, conducted during 2014 was assayed for gallium which discovered a total of 4901 assays for gallium and were completed with 27.7% of the assays containing >40 g/t Ga2O3.

Significant intersections have been calculated from the significant TREO intersections of grade of >5,000ppm over 5 metres.

Meanwhile, DY6 has commissioned preliminary metallurgical testwork to be undertaken on a select bulk sample from Tundulu to determine the suitability of the Tundulu deposit to produce a separate rare earth and phosphate concentrate, which is being undertaken by Auralia Metallurgy in Perth.

Senior government officials representing Malawi's Technical Working Group (TWG) and Land Access Resettlement Working Group (LARWG) have visited the rehabilitation trial site undertaken by Sovereign Services and expressed satisfaction with progress.

The visit reaffirmed the government's commitment to promoting responsible mining investment aligned with national development goals.

The visit also highlighted the government’s pledge to promote sustainable mining investments in Malawi while ensuring environmental and social safeguards.

Acting Director of Mines at the Ministry of Mining Mphatso Chikoti emphasised the government’s role in fostering mining sector growth.

“As the Department of Mines, as well as the Ministry of Mining, our primary role is to promote mining investments in Malawi. Being here today is one way of fulfilling that mandate,” said Mr Chikoti after touring the rehabilitation site.

He noted the importance of mining companies working in collaboration other sectors such as agriculture and tourism, so that the country could experience economic development that is multisectoral lead.

"Mining cannot take place in a vacuum".

It takes place on land, and it has to exist with the surrounding communities. Here is a clear demonstration that after mining, the land can be rehabilitated. It can go back to its original state, even being improved. With the Agriculture, Tourism, and Mining (ATM) strategy, you already see here that there is coexistence. There is agriculture taking place here after mining has been done. Who knows, maybe tourism as well. Sovereign is doing a good job, and this is the way to go. It's a clear demonstration that even the other companies can also follow what Sovereign is doing,” he continued.

Addressing public misconceptions, Mr Chikoti clarified that Sovereign was currently operating under an exploration licence and had not yet commenced active mining, and that once mining began, it would be a transparent process.

“Mining is a structured cycle with multiple stages. Sovereign is still in the exploration phase, conducting feasibility studies and market surveys before any mining licence application is submitted."

“When a mining licence is granted, the entire country will know. We are closely monitoring Sovereign’s activities and expect a formal application in due course,” he continued.

Commissioner for Estate Management and Evaluation Mickson Chiundira commended Sovereign for adhering to responsible mining through its trial rehabilitation efforts.

“Last time we visited, there were pits and dams. Now, we see maize growing. If this is the standard post-mining, it is very promising,” he said.

Mr Chiundira also outlined the government’s measures to ensure fair land acquisition and compensation under the Land Acquisition and Compensation Act.

“We work closely with investors to ensure communities are adequately compensated, preventing conflicts and ensuring smooth project implementation,” he added.

The successful completion of Sovereign’s rehabilitation trial, which saw the land promptly restored and returned to farmers without missing a planting season, underscores the company’s commitment to responsible mining practices.

Alongside ongoing environmental assessments aimed at mitigating potential impacts, the company’s dedication to local communities is demonstrated through expanded educational scholarships, enhanced conservation agriculture training for hundreds of farmers, and significant improvements to water infrastructure, with numerous boreholes repaired and newly drilled.

The government-declared Special Planning Area, supported by Sovereign, provides a crucial framework for collaborative, managed development and controlled land use moving forward. Sovereign Services has continued to engage proactively with stakeholders, maintaining transparency via regular updates and an accessible grievance mechanism.

While the Kasiya Rutile-Graphite Project remains in the study and engineering phase this year, with sample collection continuing purely for technical purposes without generating revenue, the company is steadfast in its approach to progress the project responsibly, prioritising environmental stewardship and community partnership, ahead of securing financing for future construction and resettlement phases.

Kasiya Rutile - Graphite Exploration Project

The project which is located in Kasiya in Lilongwe District is owned by ASX-listed resources group Sovereign Metals, which roped in world mining giant Rio Tinto as its strategic partner.

Latest Developments

Sovereign Metals has successfully completed mining trial stage of its Pilot Mining and Land Rehabilitation Program at Kasiya. Hydraulic mining trials at Kasiya were successfully concluded as part of the Kasiya Optimisation Study. Prior to the hydraulic mining trials, a dry mining trial successfully excavated a test pit to a depth of 20 metres. The mining trials confirm that the soft, friable Kasiya ore can be efficiently mined. Following the conclusion of mining trials, land rehabilitation demonstrations were conducted commencing with the backfilling of the test pit.

On September 28, 2023, the Company released results of Pre-Feasibility Study (PFS) which confirmed Kasiya as potentially a major critical minerals project with an extremely low carbon footprint delivering major volumes of natural rutile and graphite while generating significant economic returns.

The results indicate that the proposed large-scale operation will process 24 million tonnes of ore per annum to produce approximately 245kt of natural rutile and 288kt of natural graphite per annum once at steady state.

Kasiya is the largest natural rutile deposit and second largest flake graphite deposit in the world.

Both rutile and graphite are critical to the world economy as well as crucial to decarbonisation solutions required to meet “Net-Zero” and other targets set by policymakers worldwide.

Kayelekera Uranium Mining Project

The project is located at Kayelekera area in Karonga District.  It is owned by ASX Lotus Resources which has an 85% interest in the project while the remaining 15% is owned by the Government of Malawi. Lotus acquired the major stake in Kayelekera in March 2020 from another Aussie firm Paladin Energy.

Latest Developments    

Kayelekera restart continues to progress as planned, with first uranium production on track for third quarter of 2025.

Lotus last year signed a Mine Development Agreement (MDA) with the Malawi Government and is fast-tracking preparations to start mining in light of the soaring uranium prices on the global market.

The Company completed a Definitive Feasibility Study (DFS) which confirmed Kayelekera Uranium Mining project as one of the lowest capital cost uranium projects globally whilst also having the ability to quickly recommence production.

Kangankunde Rare Earths Project

The project located at Kangankunde Hill in Balaka is owned  by ASX-listed Lindian Resources.

Latest Developments

Lindian is fast-tracking work at Kangankunde to move into mining stage. It has just announced that early-stage site works have officially commenced, which is a key milestone in the delivery of one of the world’s most significant undeveloped rare earth assets.

Following on from the start of construction of a new 5-kilometre access road in February 2025, the Company has commenced initial civil and infrastructure development.

The Company published a Mineral Resource Estimate (MRE) which established Kangankunde as one of the world’s largest rare earths projects pegging the rare earth resource at 261-million tonnes averaging 2.19% Total Rare Earth Ore (TREO) above a 0.5% TREO cut-off grade.

The Kangankunde deposit contains excellent grade, uniquely non-radioactive material and a high percentage of rare earth elements that are key to the clean energy transition. Lindian also released a feasibility study on the Stage 1 development. Results of the study showed that the Kangankunde Project is technically and financially robust and can deliver attractive future financial returns.

The feasibility study now paves the way for Lindian Resources to secure financing (US$40M pre-production capital cost) for the Stage 1 Kangankunde Project development.

Kangankunde is now firmly established in a class of rare earths projects that are regarded as the very best in the world as defined by scale, grade and the quality of resources.

Songwe Hill Rare Earths Project

The project is located at Songwe Hill in the Southern District of Phalombe. It is owned by Canada’s TSX Venture Exchange and the AIM Market of the London Stock Exchange listed UK firm Mkango Resources through its subsidiary Lancaster Exploration.

Latest Developments

Mkango is currently conducting front-end engineering design for the project. After 13-years of mineral exploration investment amounting to over US$30-million, Mkango Resources signed a Mining Development Agreement for Songwe Hill with the Malawi Government.

The Company announced exciting results of a Definitive Feasibility Study (DFS) for the project which pegged the net present value (“NPV”) for the project at US$559.0-million post-tax, using a 10% nominal discount rate, with an internal rate of return (“IRR”) of 31.5%, payback period of 2.5 years from full production (5 years from start of capital expenditure) and post-tax life-of-operations nominal cash flow of $2.1 billion.

Songwe is now confirmed as one of the very few REE projects globally to have reached the DFS stage, with a full Environmental, Social, Health Impact Assessment (“ESHIA”) completed in compliance with International Finance Corporation (IFC) Performance Standards and The Global Industry Standard for Tailings Management (2020) (“GISTM”) adopted for design and management of the tailings storage facility.

The project is targeting rare earths such neodymium, praseodymium, dysprosium and terbium which are critical for the green transition, used in permanent magnets for electric vehicles, wind turbines and many electronic devices.

The DFS results show that Songwe Hill will have a long operating life of 18 years, with average production of 5,954 tonnes per year total rare earth oxides (“TREO”) for the first five years of full production, including 1,953 tonnes per year of neodymium and praseodymium oxides, and 56 tonnes per year of dysprosium and terbium oxides, in a mixed rare earth carbonate (“MREC”) grading 55% TREO, generating nominal earnings before interest, taxes, depreciation and amortisation (EBITDA) of US$215 million per year.

Tundulu Rare Earths Exploration Project

The project is owned by ASX-listed DY6 Metals through its subsidiary Green Energy Exploration and involves exploration for rare earths and phosphate in Tundulu, Phalombe.

Latest Developments

DY6 has announced exciting results for its exploration work for rare earths and phosphate at Tundulu.

The firm collected a total of 63 metallurgical samples from 37 sample locations along high-grade historic trench (TUTR10) at Tundulu.

The sampling results returned up to a high of 3.35% Total Rare Earth Ore (TREO) and 27.5% Phosphorus pentoxide (P2O5) over the sampled 83m length of trench TUTR10. An exciting component of the sampling results is the average HREO, being 13% of the TREO basket.

Undetectable to very low levels of deleterious elements including mercury, lead and cadmium in the phosphorus (P) rich rocks confirms the exceptional grade quality of the phosphate at Tundulu; and the sampling is representative of the mineralised Bastnaesite and Apatite carbonatite rock types exposed within the trench.”

DY6 is also conducting rare earths and niobium exploration at Salambidwe in Chikwawa and Ngala Hills in Balaka. The Company completed an airborne geophysical survey for Salambidwe as part of the exploration process.

Kanyika Niobium Project

The project is located in Kanyika in Southern Mzimba. It is owned by ASX-listed Africa focused resources group Globe Metals and Mining.

Latest Developments

Globe Metals last year signed a Community Development Agreement with the community in Kanyika.  

The Company last year signed a Mine Development Agreement with the Malawi Government and is scouting for off-take partners.

Globe finalized feasibility studies at Kanyika which is a multi-commodity deposit containing niobium, tantalum, uranium and zircon.

The project will produce high purity niobium pentoxide and tantalum pentoxide powders which will be used as additives to steel to enable steel mills to produce high-margin products through enhanced flexibility, weight reduction and strength.

Globe is in the process of setting up a refinery to process the Kanyika ore in Lilongwe which will play a big role in job creation and skills transfer.

Chambe Basin Rare Earths Project

The project is located in Chambe Basin area in Mulanje Mountain, and is owned by local firm Akatswiri Mineral Resources.

Latest Developments

Akatswiri has completed Phase 1 drilling program as part of rare earths exploration. The Company is now waiting for the drilling results as the samples extracted from the site are being processed at a laboratory in Perth, Australia.

The Company is confident of coming up with exciting results because rare earth mineralisation is visible in all the samples.

Chambe is a unique rare earths deposit as it is an ionic clay deposit. These deposits generally have several advantages over hard rock deposits, including lower operating and capital costs and shorter timelines for development.

Chambe is one of the few large ionic clay-hosted rare earth elements (REE) deposits outside of China, where currently a significant portion of global REE production is sourced.

The Chambe basin has a central part that has recessively weathered soils that are up to about 15 m thick containing REE’s of the ionic adsorption.

Akatswiri’s tenement area has also 30 million tonnes proven bauxite resource and the Company has conducted a review of previous feasibility studies which has established the mining of bauxite as feasible taking into account current technological and market developments.

  Tengani Titanium Project

The project is owned by a local firm Crown Minerals.

Latest Developments

Crown Minerals is conducting technical studies while scouting for strategic partners to launch mining works.

ASX-listed Lotus Resources, which is advancing preparations to resume uranium mining at Kayelekera Mine in Karonga, has announced that it has signed two key agreements with the Electricity Supply Corporation of Malawi (Escom) to facilitate the Kayelekera Project being connected to the power grid and the supply of electricity from the grid to the Kayelekera Project.

Lotus has also signed a binding “Contract for the Sale and Purchase of Natural Uranium Concentrates” with North American power utility PSEG Nuclear LLC reflecting the previously announced term sheets.

Lotus Managing Director Greg Bittar comments: “This is another terrific milestone towards the optimisation of the Kayelekera Project. Together, these agreements cover the design and construction of a new transmission line and substation infrastructure connecting the Kayelekera site to an upgraded substation in Karonga and the provision of electricity to the mine.”

“Whilst these agreements were being finalised, Lotus, working with its consultants, electrical engineering group ECG Engineering and ResourcesWA (a specialist energy and mining group), completed a tender for the scope of works for the grid connection and substation works with fixed price proposals now received.”

Lotus signs key agreements to enable grid connection

The Power Implementation Agreement (PIA) and Power Supply Agreement (PSA) (collectively, the Agreements), provide for Lotus to finance, design and construct a new transmission line and substation infrastructure at Kayelekera.

Bittar states that on completion of construction and commissioning, Lotus will transfer ownership of the entirety of the line and substation infrastructure at Kayelekera to Escom.

The transmission line and substation infrastructure will connect Kayelekera to Escom’s Karonga substation and the Malawi power grid, enabling the supply and purchase of electricity to the mine through the PSA.

He reports that “the PSA is for a 10 year term, however, the Company may terminate earlier by giving at least 30 days prior notice with no penalty.”

Electricity tariffs are based on the tariffs set by the Malawi Energy Regulatory Authority (MERA) for local consumers.

Tender process completed, construction contracts being finalized  

 Lotus appointed ECG Engineering Pty Ltd (ECG) to manage the supply of power to the Kayelekera Project and ECG conducted a formal tender process involving:

• the extension of the existing Karonga Substation 66kV bus, installing a new 66kV line feeder bay and associated secondary systems;

• construction of approximately 45km of 66kV transmission line; and

• construction of a new Kayelekera Substation and associated systems, (together, the Powerline Project). Bittar explains that following tenders, the estimated cost for the Powerline Project is in line with the US$20.6 million estimated in the Accelerated Restart Plan 2.

He says: “This estimated cost excludes any potential battery energy storage system (BESS), which the Company estimates will cost circa US$4million. The Company is still reviewing the feasibility of the BESS as part of its power supply arrangements.”

“Whilst the Company continues to explore financing, including off balance sheet alternatives, for the power grid connection and potential battery system, the majority of the capital expenditure for the Powerline Project is expected to be spent once production has commenced at Kayelekera.”

The Environmental Social Management Plan (ESMP) for the transmission line and substations was approved by the Malawi Environmental Protection Authority (MEPA) in December 2024.

Bittar reports that Lotus will now work with ECG and ResourcesWA to finalise the design, construction and supply contracts and commence work to enable the connection to the power grid as soon as possible in 2026.

Binding offtake contract with PSEG Nuclear LLC

He says further to the ASX announcements dated 3 September 2024 and 29 January 2025 regarding the signing of non-binding and conditional term sheets for the offtake of 1.6M lbs in total for the 2026 – 2029 period, the Company has now reflected the term sheets in a binding and non-conditional “Contract for the Sale and Purchase of Natural Uranium Concentrates”.

PSEG Nuclear LLC is a subsidiary of Public Service Enterprise Group (PSEG), a publicly traded diversified energy company based in Newark, New Jersey. PSEG Nuclear LLC operates three nuclear generating units in southern New Jersey: Salem Generating Station Units 1 and 2, and the Hope Creek Generating Station. These facilities are located at the Artificial Island site on the Delaware River.

Lotus, which purchased the Kayelekera tenement from another Aussie firm Paladin Energy, renewed the mining licence for a further 15 years in 2021. The Company also signed a mining development agreement with the Malawi Government and a community development agreement with the local community as required by Malawi’s Mines and Minerals Act.

Despite the Reserve Bank of Malawi (RBM) operating the structured market for gold and gemstones for years now through its subsidiary Export Development Fund (EDF), Artisanal and Small-scale Miners (ASMs) dealing in these minerals say they are continuing to experience a host of challenges in finding a formal market for their minerals.

Chairperson of ASMs in Malawi who is also President of the Federation of Women and Youth in Mining (FWYM) Flore-Annie Kamanga said in an interview that the problem emanates from lack of licensed buyers as EDF officers are not available to buy the minerals in all mining areas, difficulties in obtaining export permits, and a lack of knowledge about pricing mechanisms and value addition.

Kamanga said: “Small-scale miners primarily sell their minerals through informal channels due to limited access to formal markets. This forces the miners to deal with middlemen who offer very low prices.”

“There are also difficulties in obtaining export permits leading to smuggling, and limited knowledge of pricing mechanisms and value addition, which results in miners being exploited.”

Kamanga also pointed out that RBM’s verification standards require documentation that many miners lack such as proof of legal mining and official export licenses.

“The costs associated with meeting verification standards are too high for most artisanal miners. There is also limited awareness and technical knowledge on how to comply, and bureaucratic delays in obtaining necessary approvals make compliance unachievable.”

However, Kamanga believes that mining cooperatives can offer a viable solution to the problems.

“Forming cooperatives can be a game changer as through the cooperatives, ASMs can pool resources together to afford legal compliance costs, strengthen miners’ bargaining power to negotiate better prices, facilitate training on verification processes, and enable direct engagement with regulatory bodies like RBM.”

She, however, said the cooperatives will require adequate support to be effective including provision of access to affordable loans or grants to cover compliance costs. They will also need technical support including training on mineral valuation, record keeping, and proper mining practices.

“The government must also facilitate direct sales to licensed buyers and streamline the verification process to make compliance more accessible,” Kamanga said.

Kamanga observed that mining cooperatives have already helped many miners formalize their operations and secure mining licenses.

“They provide financial assistance for compliance-related expenses and offer collective support in meeting government regulations, including RBM verification standards. However, their success depends on strong leadership, proper governance, and government support.”

Meanwhile, RBM is seeking independent assessors for gold and gemstones. The Bank says the assessors will assess the authenticity of the purchased minerals, weight.

The Malawi Mining and Minerals Regulatory Authority has granted a prospecting licence to ASX-listed DY6 Metals for the Karonga tenement which covers a recently identified high potential Copper (Cu) mineralisation anomalous area.

 DY6 Chairman Dan Smith says in a Press Statement that the licence grants to DY6 the exclusive right to prospect for copper, rare earth elements, lithium and other minerals for a term of three years with an option to renew for a period not exceeding two years.

Smith explains that preliminary reconnaissance/ surveillance sampling work on the licence area revealed occurrence of elevated Cu grades, with initial portable XRF results ranging from 1.4 to 7.8% Cu in rock with the results to be verified using standard laboratory-based XRF analytical assaying methods.

He states: “DY6 has recently acquired and completed reprocessing of historic hyperspectral survey data, which has been used to map areas with high probability for copper mineralisation. The results from this exercise correlate well to the mineralisation identified in the sampling work.”

“Historic anomalies from regional airborne geophysical radiometric and magnetic data appear to correlate with both the hyperspectral probability copper mineralisation mapping and the preliminary sampling reconnaissance work conducted.”

“Exploration for Cu and other minerals will continue on the licence area.”

The Karonga Prospecting Project is located about 440km north of the capital Lilongwe. It can easily be accessed using Karonga-Chitipa M1 Road turning to the west at Kasikisi School signpost along the M1 Road.

Geology and Mineralisation

The Karonga area is associated with a series of NW-SE and N-S trending ridges with metamorphic Basement complex rocks commonly identified as windows within the Karroo System which overlies the basement. The Karroo System units are typically sandstones with carbonaceous shale formations.

The eastern part of the licence area is overlain by several patches of Karoo sediments and Cretaceous to recent lacustrine sediments, the interrelations of which are complex due to unconformities and faulting. This area is part of the northern sub-province of the Malawi Province of the Mozambique belt, active between about 700-400 million years ago. The major lithological components are gneisses and intrusives of the Misuku Belt, representing the south-eastern extension of the Ubendian Mobile Belt of south-western Tanzania into Malawi.

On a more local scale, the licence area is comprised of a suite of quartzite rocks, pegmatitic rocks and amphibole gneisses that intrude into the basement gneissic rocks forming the wall rock of the project area. The lithologies have a general NW-SE trend and are dipping west / south-west at very steep angles ranging from 600 to 850.

The presence of base metals and other related metal mineralisation is evident in the pegmatitic rocks and quartz zone (quartzite) group. The quartzite unit has clear malachite and azurite coexisting with sulfide minerals indicating the presence of copper and other base metals.

Surveillance/Initial Reconnaissance Work Done

1.    Surveillance Site Visit

Four samples were collected on a recent reconnaissance visit to the site. The visit targeted an anomaly which was identified using a combination of geology and aeromagnetic data.

The samples were collected on a mineralised quartzite zone, which displayed disseminated mineralisation of malachite and azurite with sulfides. These samples were analysed using an Olympus Avanta Portable XRF (pXRF) machine.

Results showed elevated Cu grades ranging from 1.4% to 7.8% Cu. These samples were collected on a 60cm thick zone of an exposed portion of a 40 – 50m long quartzite zone.

The samples will be sent to SGS Randfontein laboratory in South Africa for a standard XRF analytical procedure to verify the Cu grades and other minerals’ grades obtained from the pXRF.

Samples collected on surveillance site visit Cu analytical results (pXRF

2. Hyperspectral Data Analysis and Interpretation

Historical satellite imagery data has been acquired, re-processed and interpreted by an experienced spectral data analyst from Dirt Exploration. This is intended to assist with probability mapping of several minerals including Cu mineralisation. 

The data is extracted by spectral unmixing of the Sentinel-2 VNIR (Visible & Near Infrared) and SWIR (Short Wave Infrared) satellite imagery. Sentinel-2 VNIR/SWIR imagery is the highest spatial resolution satellite imagery available with 10m resolution.

Using a geochemical exploration technique called Mobile Metal Ions (MMI) the extracted and unmixed spectral bands provide some diagnostic mineral responses in the regolith (overburden / outcrop rock material) above a buried mineral deposit.

In the case of Cu mineralisation, six end-members are anomalous over Cu occurrences: azurite, gypsum, illite, hypersthene, beryl and jarosite.

“The results of the spectral data analysis combined with the aeromagnetic data signatures and confirmed by the four geochemical samples analysed using the pXRF machine shows the potential of the Karonga licence area for copper mineralisation and possible occurrence of a copper deposit that requires to be investigated further,” says Smith.

He explains that further exploration work is currently planned to follow the anomalies identified in the surveillance activities, including geochemical analysis of the four collected samples at SGS Randfontein laboratory in South Africa to verify and validate the results obtained from the pXRF machine.

The planned activities at the site include detailed geological mapping of the licence area; and detailed geochemical sampling of surface outcrop rock chips, soils and where possible trenching to be considered.

“The outcome of the activities above will lead to target generation for a future drill program, which will in turn be used for mineral resource and reserve estimations,” Smith says.