Mkango Resources has entered into a Project Development Funding Agreement with the United States International Development Finance Corporation (DFC), the U.S. government’s development finance institution, to secure US$ 4.6 million in reimbursable funding as part of the DFC’s Project Development strategy for the Songwe Hill rare earth project in Phalombe.
The funds will support Project Development activities in the form of Front-End Engineering Design (FEED) and value engineering studies.
Mkango President Alexander Lemon explains in a statement: “The Project Development Funding will be equally matched by the firm’s contributions over the next 18 months.”
“Further, for a period until five years after the termination of the Agreement, the DFC will have the right (but not the obligation) to directly provide and/or arrange for financing or investment for the Project on commercial terms substantially comparable to or better than the terms of other financing options available to finance the Project when considered in conjunction with the other benefits brought by DFC to the Project in connection with the Project Development,” states Lemon.
The DFC’s Project Development product is part of the U.S. Better Utilization of Investments Leading to Development (BUILD) Act and provides support for high-impact companies to overcome operational, financial, and developmental challenges, thereby enhancing project viability and readiness for future investment.
Project Development Funding is tailored for projects with the potential to receive later DFC project financing of 100 Million U.S dollars construction financing.
Lemon says: “I am delighted to announce the participation of the DFC to assist Mkango to fast track the development of the Songwe Hill Rare Earth Mining Project in Malawi.”
“The US Government’s DFC recognizes the game-changing development potential of the Songwe Hill Rare Earths deposit and this initial Project Development Funding provides a path for Mkango to secure the longer-term development funding needed to develop Songwe Hill and positions the Mkango group as one of the few key players in the global rare earth supply chain.”
The U.S. International Development Finance Corporation, established in 2019 with bipartisan support under President Trump, is America’s development finance institution. DFC partners with the private sector to advance U.S. foreign policy and strengthen national security by mobilizing private capital around the world.
DFC invests across strategic sectors including critical minerals, modern infrastructure, and advanced technology — fostering economic development, supporting U.S. interests, and delivering returns to American taxpayers.
Mkango’s corporate strategy is to become a market leader in the production of rare earths.
Lancaster Exploration Limited (expected to be renamed Mkango Rare Earths Limited), owner of the Songwe Hill Rare Earths Project ("Songwe Hill") which will be producing a high value add purified mixed rare earth carbonate in Malawi and is designated as a strategic project under the EU Critical Raw Materials Act, is also applying for a listing on the New York US Nasdaq which will be the first Malawian business to list as a publicly traded company in the USA. Songwe Hill is also supported by the Minerals Security Partnership. The company will also be listing on the Malawi Stock Exchange.
Songwe Hill is part of a vertically integrated, pure-play global rare earth platform, with the goal to provide a mined, refined and separated supply of rare earth oxides to supply chains across North America, Europe, Africa and Asia.
Songwe Hill is one of the very few rare earth projects globally to have completed a NI 43-101 compliant Definitive Feasibility Study ("DFS"), with a full Environmental, Social, Health Impact Assessment ("ESHIA") completed in compliance with IFC Performance Standards.
The Ministry of Mining has with immediate effect suspended all small scale gold mining operations in Kasungu District following a tragic accident which has cost lives of eight people and injured five in Kasalika Village, Traditional Authority Suza’s area.
Principal Secretary Betchani Tchereni and Director General for Mining and Mineral Resources Regulatory Authority Samuel Sakhuta state in a joint Press Release that the ban will allow them to finalise their due diligence on the incident that resulted from informal artisanal gold mining activities that continue to attract multitudes in the district.
In accordance with the Mines and Minerals Act, 2023, (No. 25 of 2023), Section 35, any reconnaissance, prospecting, exploration, or mining without a valid mineral tenement or artisanal mining permit constitutes a criminal offence. Offenders are liable to a fine of K20,000,000 and imprisonment for up to four years and that courts may also order land rehabilitation, with costs recoverable as a debt to the government if the offender fails to comply.
Reads the statement from the Ministry: “The Ministry and the Authority extend their deepest condolences to the bereaved families and reaffirm their commitment to preventing such tragedies in the future.”
“The Ministry of Mining as well as the MMRA are aware that illegal mining operations are taking place in several parts of the country, involving a range of minerals.”
“Based on the site visit that the MMRA carried out on 30th September, 2025, there are more people involved in illegal mining activities in the area which pose serious risks to public safety, the environment, and the integrity of the mining sector despite the efforts taken to curb the malpractice across the country.
“MMRA will enhance enforcement by carrying out joint inspections with law enforcement agencies to close illegal operations and prosecute offenders.”
The MMRA also announced that it will carry out community awareness campaigns aiming at intensifying education efforts across affected districts to highlight the dangers and legal requirements of mining.
The statement says: “The Ministry of Mining and the MMRA are carrying out a comprehensive investigation to determine the circumstances of the recent incident and identify those responsible.”
“The Ministry of Mining will train cooperatives that will be formed in these areas while the MMRA will issue small-scale mining licences to formalise the activities.”
The Ministry of Mining and the MMRA appealed to community leaders and local authorities to discourage illegal mining and promote legal alternatives as well as support in monitoring and reporting of illegal mining. They also urged Malawians to report illegal activities, particularly where safety is at risk.
But reacting to the statement, Artisanal Small-scale Mining (ASM) consultant Chikomeni Manda said the ban will just worsen the situation as currently the escalating illegal mining activities across the country are due to another ban on exporting of gemstones as well as delays by the Ministry to issue ASM licences.
Manda said: “Do you think this ban will hold in Kasungu? No, it is just like the gemstone export ban that has not worked because smuggling has increased hence activities of only legal operators have been impeded.”
“Why can Government not sit down with the miners/ ASM Federation, CSOs and many other stakeholders to find a proper solution to address some of these challenges being faced than imposing these useless bans which do not work at all?”
He reiterated the need for Reserve Bank of Malawi (RBM) who are buying gold across the country to start giving back to the community by offering trainings to ASMs.
Mining Expert and Geoscientist Ignatius Kamwanje said the blame on the incident should go to both Government and the community.
Kamwanje explained that government should be blamed for delaying in formalizing the ASMs and dealing with illegal miners as well as lack of regular monitoring, inspections, sensitization, capacity building, and health and safety awareness in ASM sites. He said: “The miners are to blame as well. Safety was compromised.”
“The MMRA should have enough funding for inspectors to be on the ground to sensitize these miners on the dangers of illegal mining.”
“ASM mining hotspots should be designated formal areas, well mapped and monitored by the government. This will offset other undesignated areas as no go zones.”
Kamwanje concurred with Manda in slamming the ban saying government needs to encourage illegal miners to form cooperatives through all formal licencing processes.
“The government banning ASM activities is not a solution. The government has a prerogative to preach to ASMs the benefits of responsible/ sustainable mining, health and safety and other regulations. The government should engage the illegal ASMs to get licenced.” said Kamwanje.
Programs/MEAL Officer for Natural Resources Justice Network (NRJN) Biswas Ishmael said it is difficult for the government to stop gold mining activities as they are many doing it with the intention of earning a living. Ishmael said the major challenge is that the communities involved in the mining activities are much connected to government structures. He said: “The continued market for gold just like charcoal in Malawi makes the situation more difficult to contain.”
“Lack of consistency in doing things in the governance structures brings doubt as to whether those monitoring can be sustained.”
“The tendency of some government officials of grabbing tenements from locals in these hotspots to grant to influential individuals from elsewhere forces the locals to continue searching for other gold-rich spots.”
The deceased in the Kasungu accident were identified as Mphatso Banda, Sindama Mnyanja, Lydia Mpando, Labani Kawongo, Idah Chikondi, Tiyamike Phiri, Galeson Mpanganachi Chibwezi, Kamputeni Harrison Banda, and Grace Chisale.
Kasungu Police Public Relations Officer Joseph Kachikho expressed concern that rescue efforts were complicated by the lack of proper equipment and the unstable nature of the site.
Sub-Traditional Authority Suza said there is need to introduce regulations to govern mining activities in the area to ensure safe practices stressing that “We cannot keep losing lives like this."
Chairperson of Kasungu Civil Society Organisation Network Braxton Banda urged the authorities to treat the situation with the urgency it deserves.
"We are calling on stakeholders to ensure that both the environment and the lives of people are protected. We also urge the Ministry of Mining to intervene by providing appropriate machinery and safety gear to make mining safer for the communities who depend on it,” Banda said.
Another mine accident involving ASMs recently occurred in Balaka District where it killed one miner and left others with minor injuries.
The Ministry of Mining says the revision of the Explosives Act (Cap. 14:09 of 1968) is in final stages, and the remaining processes include inter-ministerial consultations and finalization meetings with the Ministry of Justice to prepare the Bill for submission to Cabinet and later Parliament.
Responding to a written questionnaire, Public Relations Officer for the Ministry Tiwonge Kampondeni told Mining and Trade Review that the Ministry already submitted a funding proposal for the final activities to facilitate completion of the process to the Ministry of Finance in April 2025.
Kampondeni said: “The Ministry of Mining has been leading the review and modernization of the Explosives Act of 1968 and the process of revising the Act is now at an advanced stage.”
“A draft Explosives Bill and its subsidiary Regulations have already been developed, validated through stakeholder consultations held in Mulanje, Dowa, and Nkhatabay, and subsequently submitted with drafting instructions to the Ministry of Justice and Constitutional Affairs for final legal drafting and processing.”
The proposed Explosives Bill introduces several important reforms intended to align Malawi’s explosives management regime with modern mining, safety, and environmental standards. Some of the notable changes include: introduction of new types of licences and permits including for manufacturing, importation, disposal, and fireworks.
Kampondeni said the new Act will also introduce standardized forms for licence and permit applications as well as revision and rationalization of licence and permit fees through an updated fee schedule.
She explained: “The new Act will also include mandatory record-keeping requirements for all holders of licenses and permits; qualification and experience standards for persons authorized to handle or use explosives including loosely, certification process like shot firers and magazine masters.”
“It will also enhance safety, environmental protection, and incident reporting provisions and establish a Directorate of Explosives and an Explosives Committee to strengthen institutional oversight.”
Kampondeni said the Ministry is optimistic that the modernization of the Explosives Act will have significant positive impacts on the mining sector and related industries.
She said the new Law will promote safe and responsible use of explosives, reducing risks to workers, the public, and the environment.
Kampondeni explained that the modern Act will enhance efficiency in licensing and regulation, providing clear procedures and timeframes for approval and renewal. She said: “The new Act will encourage professional competence among users through defined qualification standards and also facilitate compliance with environmental and occupational safety regulations, supporting sustainable mining practices.”
“It will also strengthen law enforcement and accountability through higher penalties, defined offences, and corporate responsibility provisions.”
“Overall, the revised legal framework will create a safer, more transparent, and more efficient operating environment for the mining sector, while ensuring that Malawi’s regulatory systems remain current and internationally competitive.”
For over 57 years now, Malawi’s extractives sector has been using the old Explosives Act which includes laws that do not align with the current mining status. Stakeholders including Civil Society Organisations (CSOs) have been advocating for Government to fast track the process of reviewing the Act.
The newly elected President of the Malawi Women in Mining Association (MAWIMA) Ashley Simbeye says she will prioritize empowerment, safety and fair representation of women in mining establishments in the country.
Simbeye told Mining & Trade Review that her victory at MAWIMA polls was both an honour and a responsibility, one she intends to carry with humility and determination.
“I feel deeply honoured, humbled and inspired to be entrusted with this role. This is not just a position for me but also a call to serve women in mining across Malawi, to amplify their voices and ensure they take their rightful place in the mining sector,” she said.
Simbeye explained that her election comes at a time when women miners are grappling with significant challenges ranging from unsafe working environments to limited access to resources.
She said, “I will push for stronger enforcement of safety standards, for accessible protective gear and for community-led safety committees where women miners themselves take part in monitoring and accountability.”
While safety is a pressing concern, Simbeye also noted that women in mining face a broader set of barriers including poor working conditions, limited representation in policy spaces, economic vulnerability and cultural stereotypes that undermine their contributions.
She said in addressing these challenges, MAWIMA will assist in building solidarity among women miners while advocating for gender-sensitive policies at national level.
“Being elected means so much more than holding a title. It reflects the confidence and hope my fellow women miners have placed in me. That trust fuels me to work harder to bring about meaningful change. I may feel overwhelmed sometimes, but I am fueled by passion and commitment to serve,” she said.
Simbeye revealed that her strategy will rest on three interconnected pillars namely safety and health, economic empowerment and advocacy. Under economic empowerment, she intends to champion training programs, access to credit and market linkages that will allow women miners to maximize the value of their work.
“We have women producing gemstones, quarry products, and small-scale gold, but most of them sell their minerals informally at low prices. With proper training, financial literacy and market connections, these women can turn their mining into viable businesses that support their families and communities,” she said.
Simbeye also stressed the need to decentralize MAWIMA’s structures so that women miners in rural districts are not excluded from the association’s programs.
“Our association must reach women on the ground. Decentralization will ensure that those in remote areas, who often face the toughest conditions, also have a voice and access to opportunities.”
She said her leadership will focus on ensuring that women miners are visible in decision-making spaces.
“Too often, women miners are left out of the big policy discussions about mining in Malawi. I want to see our voices included when laws, regulations and investment decisions are made.
Women make up a significant part of the workforce in artisanal and small-scale mining and their input should never be an afterthought,” she said.
Reflecting on her journey to leadership, Simbeye said she sees her election as a symbol of what is possible when women unite around a shared vision. She described MAWIMA not only as a professional platform but also as a community where women miners support and uplift each other.
She said, “this presidency belongs to all women in mining as much as it belongs to me. Together we will shape a future where our contributions are visible, valued, and celebrated. With unity, we can turn our challenges into opportunities and build a stronger, safer, and more inclusive mining sector for all.”
President of the Federation of Women and Youth in Mining (FWYM), Annie Kamanga, called on the newly elected leadership of MAWIMA to prioritize licensing for women miners, strengthen member engagement and advance women’s participation across mining value chains.
“If women miners are given the tools, financing and recognition, we can turn a lot of minerals into both livelihood opportunities and a solution for Malawi’s mining and economic sector,” Kamanga said.
Founded in 2014, MAWIMA is a membership-based organization that represents women in Malawi’s artisanal and small-scale mining sector. The association advocates for better working conditions, provides training and networking opportunities and works to advance the participation of women in the industry.
Malawi is endowed with a vast mineral resource base. Most of the areas are being explored for various minerals including the critical minerals, rare earths, HMS (Heavy Mineral Sands), coal, gold, precious and semi-precious minerals(gemstones), dimension stone, rutile, graphite, niobium, uranium, bauxite, limestone, just to mention but a few. Malawi has witnessed an influx of exploration and mining companies scrambling for these minerals.
There have been Mining Development Agreements (MDAs), Community Development Agreements (CDAs) signed and of late Lindian (an Australian mining entity) is carrying out construction in Balaka district ready to start mining rare earths. Other developments that are of interest to note are the establishment of Malawi Mining Investment Company (MAMICO), a state-owned mining enterprise and Mining and Minerals Regulatory Authority (MMRA). All these developments have progressively been implemented and it is anticipated that the coming in of the new government shall foster such initiatives and also continue bringing and leveraging new insights into mining operations, activities and ventures.
While admitting that there have been positive and negative impacts arising from implementation of mining activities and interventions, it must be noted that the positive impacts are the ones that can shape and bring the economic base to achievable limits. The new government must at all cost aim at addressing some challenges in the mining sector by bringing sanity.
The following are expectations to the new government regarding the mining sector development:
There is a proliferation of gold mining hotspots in the country. Almost in every district, gold has been discovered by ASMs and is being mined illegally. Combating illegal gold mining requires a multifaceted approach, including formalizing artisanal and small-scale mining (ASM) to integrate into the legal economy, strengthening regulatory and enforcement mechanisms through improved legislation and oversight, and leveraging monitoring using modern technology such as drones. The government needs to come in to sensitize these groups on the importance of licensing. ASMs must also be encouraged to form partnerships in form of cooperatives. Offering grants or low-interest loans to encourage cooperatives formation can improve safety and operational standards of mining activities. The government must also facilitate designation of gold mining hotspots as formal areas and must be well mapped and monitored by the government.
In the context of illegal gold mining, law enforcement must not only focus on punishing offenders but also addressing the underlying socio-economic conditions that drive individuals into illegal gold mining activities. Many small-scale miners turn to illegal mining due to poverty, lack of employment opportunities, and limited access to formal mining permits. Without viable economic alternatives, enforcement actions such as arrests may not necessarily solve the problem and may also be liable to harm marginalized communities leading to increased poverty and social unrest. To align with sustainable development principles, enforcement efforts should include a focus on poverty reduction and the provision of alternative sources of livelihoods.
Lilongwe City Council (LCC) has awarded a K2.56-billion contract for the completion of a 1.4-kilometre tarmac road stretching from Mtsinje Ground to ZBS in Area 24 to FNC Engineering Company
The project, which stalled for some time, has resumed with funding from Malawi Government and is viewed as a critical milestone in the council’s mission to enhance infrastructure and improve the quality of life for Lilongwe City residents.
LCC Director of Engineering Julius Tsogolan said the initiative reflects the council’s broader strategy of developing a well-planned, clean, and safe city with reliable infrastructure and services.
He said the construction project will empower locals through employment opportunities.
“By hiring community members, we are making sure the project goes beyond a new road surface. It creates economic opportunities for residents and reinforces our goal of inclusive development,” Tsogolan said.
FNC Engineering MD Fishan Chikofya assured both the council and the Area 24 community of the project’s durability, citing the company’s proven record in road construction. He said the new road will improve mobility in the area, reduce travel time and promote local commerce.
“The road will not only enhance connectivity but also create a ripple effect of economic growth by linking people to services, businesses and opportunities,” Chikofya said.
Road upgrades are essential in reducing congestion, facilitating trade and laying the foundation for a modern and prosperous city.
The capital city has of late seen a number of road expansion projects, and the notable ones include the expansion of the Saulos Chilima Highway from Old Town to City Centre, Mzimba Street from Kamuzu Centre Hospital Roundabout to Crossroads RoadaAbout and the road from Area 18 Interchange to Kanengo Industrial area which are now a six lane roads.
The Ministry of Mining says the Malawi Mining Cadastral Portal, introduced in 2016 to improve transparency in the licensing of mineral rights, has achieved its purpose of opening up data to the general public.
Acting Director of Mines in the Ministry of Mining Mphatso Chikoti said the cadastral portal has transformed access to mining information that was previously hidden from the public.
“People did not know which areas were free or not when applying for licenses. The portal now provides expiry dates of licenses, ownership details, and the minerals found in each area. These were not available before, but today anyone can view these,” he said.
He explained that the system is updated in real time as officers are always entering new applications or modifying license details.
Chikoti also said the Ministry is aworking on upgrades that will allow applicants to apply for mining licenses online.
However, he admitted that frequent legal reforms have delayed progress as the portal was initially configured under the Mines and Minerals Act of 1981 but later had to be adjusted to align with the 2019 Act, and again with the 2023 Act.
“These changes affected the updating of the portal but it is now underway,” Chikoti said.
Commenting in a separate interview, National coordinator for Natural Resources Justice Network (NRJN) Kennedy Rashid agreed that the computerized system has improved transparency compared to the previous paper-based system but he expressed concern that the cadestre remains inconsistent hence has not fully met expectations.
“The portal has made licensing data more accessible and reduced secrecy in allocation. But irregular updates, incomplete data, and lack of proactive communication mean it has not fully delivered on accountability,” he said.
Rashid added that public awareness of the portal is very low, particularly at community level.
“There has been little systematic effort by government to train communities or watchdog groups on how to use the platform. Awareness is largely driven by Non-Governmental Organisations (NGOs) and international partners. Most affected communities do not know it exists, let alone how to interpret its data,” he said.
Rashid said the portal also faces technical challenges, which include inconsistent updating of information, limited detail on contracts and beneficial ownership and difficulties for ordinary users due to its technical design and poor internet connectivity to rural communities.
He said with these problems, the portal is not yet fully aligned with the provisions of the new mining law, (Mines and Minerals Act of 2023) which emphasizes on transparency in licensing, disclosure of mining contracts, and community participation.
The cadastral portal consists of license maps and status updates. Rashid argued that without integration of contract disclosure and reporting features, the system falls short of the law’s requirements.
He called for various reforms to make the cadastre more effective including regular and comprehensive updates to include mining contracts, environmental management plans and financial payments and also simplifying the user interface and linking the portal with other transparency programmes such as the Extractive Industries Transparency Initiative (EITI).
“Government should organize training sessions for local governments, community representatives, and civil society organizations to build capacity in using and interpreting data. Without this, ordinary citizens cannot use the portal for accountability,” Rashid said.
For Malawi, the mining cadastral portal represents more than technology. It is a test of how far the country is willing to go in making resources management both efficient and accessible.
It is a new era for Malawi. Former President Arthur Peter Mutharika is back in power. Malawi Electoral Commission (MEC) declared Mutharika, presidential candidate of the Democratic Progressive Party (DPP) for the 2025 tripartite elections that took place on September 16.
Mutharika emerged winner after scooping 3,035,249 votes representing 56.8%, defeating former President Lazarus Chakwera of the Malawi Congress Party who got 1,765,170 votes representing 33.8%.
In his campaign manifesto, Mutharika pledged to do away with all impediments to the growth of the mining industry in Malawi including; inadequate mineral exploration; lack of laboratory and monitoring equipment; inadequate dissemination of information to the general public; gaps in skilled personnel at all levels as well as lack of staff establishment in districts and border posts; and inadequate capacity in contract negotiations.
Mutharika said: “A strength of the industry is that it has available policy and legal mandates such as Mines and Minerals Act, Mines and Minerals Policy, Petroleum Exploration Act, Explosives Act, Artisanal and small-scale mining policy.
“Through this Manifesto, the Democratic Progressive Party government commits to: ring-fence all critical minerals under the State-Owned Malawi Mining Investment Company (MAMICO) and ensure that geophysical surveys shall be undertaken regularly to target mineral exploration for rare earth minerals, precious and base metals, and industrial minerals.”
“We will also put in place the relevant governance and mining legal frameworks and develop the skills that can support high value minerals.” To ensure that there is adequate energy to be used in mining, the DPP leader promised to encourage and facilitate mining companies to generate their own electricity.
Mutharika also promised to formalize and regulate artisanal and small-scale mining (ASM) while linking ASMs to appropriate technologies and anchor mining firms. He said: “We will also facilitate both establishment of markets for minerals and value addition in some of the minerals to enable them fetch higher prices on the market.”
“We promise to capitalize the Malawi Mining Investment Company (MAMICO) to the tune of not less than K500-billion to enable it promote the optimal development of the mining sector, properly manage the Government equity stakes in various mining ventures and effectively maximize national revenue and benefits from mining for Malawi.”
Despite its potential to significantly contribute to Malawi’s economic development, the mineral sector is currently encountering numerous challenges hence only caters for a staggering 1% to the country’s Gross Domestic Product (GDP).
While congratulating the newly elected president, Coordinator for Chamber of Mines and Energy Grain Malunga advised the DPP government to facilitate speedy development of the sector to utilize mining revenue for other key sectors. Malunga said the mining sector has high potential of developing the economy hence Government should consider changing Agriculture, Tourism and Mining strategy to Mining, Agriculture and Tourism (MAT).
He said: “First and foremost, the new administration needs to understand that the most sustainable way of promoting development of this country is not to borrow consumption money from multilateral institutions, but to facilitate speedy development of the mining sector and utilise mining revenue for agriculture productivity, health and tourism development.” “Change ATM to MAT because mining has the ability to create wealth for agricultural productivity and tourism development, and manufacturing.”
“ASM subsector requires serious attention especially in gemstone and gold where collaborative efforts are required among exploration companies, government and local councils.”
Malunga also said to ensure that security and peace are not compromised in the sector, there is a need for strong and efficient Mining and Mineral Resources Regulatory Authority and Malawi Mining Investment Company, which have the ability to turn around Malawi’s economic forunes.
In a separate interview, Coordinator for Natural Resources Justice Network (NRJN) Biswas Ishmael advised the new president to ensure that Malawi has a Community Development Agreement (CDA) template that all mining investments can follow, while simplifying the process for ASM operations and providing the ASMs with necessary support to enable formalization of their activities.
Ishmael emphasized the need to avoid bringing in people from other areas to register as cooperatives in mining districts, while deliberately sidelining the locals engaged in the same activities.
He said for instance locals from Makanjira were promised to be organized and supported to register a cooperative, but the cooperative that was registered for that area is owned by people from other districts.
Ishmael said: “In opaque contracting and licensing, the new president should improve the handling of negotiation, licensing and Memorandum of Understanding (MOU) development.”
“The president elect should analyse the beneficial aspect of using the stipulation of the law against a mining development agreements. “Strengthening the recently developed mining company is essential. There is need for substantial and strategic support to be given to the state-owned mining company and ensure that it is participating in the large-scale mining investments.”
“If funds can be realized, even through borrowing to make the company start its own investment, specifically in one of the critical minerals, it can be a good development.”
He also urged Mutharika to create a provision that will collect, guide and track utilization of revenues from the mining sector. Ishmael also said there is a need for intensifying sensitization or awareness intervention, borrowing a leaf from how the agricultural sector operates.
Large and medium scale mining investors have been complaining of a number of problems that are affecting their operations in Malawi including lack of adequate power and transport infrastructure. and government delays in issuing permits and licences.
The Kayelekera Uranium Mine in Karonga that was relaunched by former President Lazarus Chakwera this year is the only operating large scale mine in the country. Lotus Africa, a subsidiary of ASX-listed Lotus Resources, has reopened the mine after it was mothballed in 2014 by the previous tenement holder Paladin Africa due to low prices of the yellow cake on the global market in light of the Fukushima Nuclear Disaster that resulted in closure of many nuclear plants in so doing knocking down the global demand and prices of uranium. The prices of uranium have improved over the years which has necessitated the opening of the mine.
The other potential projects that are expected to move to production stage in Malawi include Kanyika Niobium in Mzimba, Kasiya Rutile-Graphite in Lilongwe, Songwe Hill Rare Earths in Phalombe, and Kangankunde Rare Earths in Balaka.
Government is expected to roll out the Innovation, Creativity and Entrepreneurship (ICE) model in order to attract and uplift the youth, women and people with disabilities to take part in the mineral value chain.
In an interview with Mining and Trade Review, Acting Director of Mines in the Ministry of Mining Mphatso Chikoti said the ICE Model is a homegrown land marking tool for the maximization of youth appetite and eventual eminence attainment of the field.
Chikoti said the ICE model will attract young generation with environmental-friendly technologies to venture into the mining sector to promote a key trading element of traceability that will assist investors and traders with smart deposits location.
He said the ICE model will ensure that trade integrity and sustainable investment as gem sellers are traced to determine selling points and prices too.
Chikoti said: “The Innovation, Creativity and Entrepreneurship model idea is to ensure that youth, women and people with disabilities are the ones that participate in all mining and minerals value chain including in supply system, transportation, and provision of skilled labour. “
“We need a participative approach towards mining development and investments through application of ICE because as a country, we have potential to scale up revenue sources through mineral exports.”
“It is possible to liberate ourselves from the International Monetary Fund (IMF) loans. We may be geographically characterized as small but in terms of availability and potential of our mineral resources, we fall in the group of China and Russia.”
Commenting on the development, Founder and Director of Tithandizane Youth Support Organisation operating in Balaka Aubrey Duwa commended the model saying once it comes into play it will help in fulfilling the agendas and projects that the organization is implementing in the district.
Duwa said the organization is currently mobilizing youths operating in Artisanal Small-Scale Mining (ASM) to formulize cooperatives which they feel with the coming of ICE model will be easier for them to operate.
He said: “As Director and a young person from the mining community of Balaka I really support the model because we are doing capacity building for ASMs.”
“We feel that if we formalize ASM groups that the youth have got in Kangankunde, and surrounding areas, they will benefit from the model.
“Our plan is to form mining cooperatives. We are sure that through the cooperatives, the element of entrepreneurship will be embedded in the groups.”
“There is also the element of training the cooperatives on how to add value to the precious minerals as well as how to directly and indirectly market the gemstones to international markets without the use of middlemen to maximize their benefits.”
A female advocate for Youth in Mining Aisha Magula lauded the program but said it will only be beneficial if the government implements what is enshrined in the model.
Magula said: “The model is a good idea if indeed what is outlined in the model is going to be implemented on the ground because the biggest problem that we, Malawians, have is that we are good at producing documents but we fail to implement practically what has been outlined in those documents.
“But even so I believe that if we make good use of the model practically it is going to address unemployment, provide entrepreneurship and technological skills and will enhance partnership and interdependence between the mining communities, companies and government which will help eradicate poverty among youth and women in our societies.”
Meanwhile, the Ministry of Mining is at advanced stage in creating a first ever Gold Marketing Board to foster an excellently-structured national marketing system.
The establishment of a stable and self-sustaining ecosystem, but not necessarily the one that existed before mining began. In many cases, complete restoration may be impossible, but successful remediation, reclamation, and rehabilitation can result in the timely establishment of a functional ecosystem.
The cleanup of the contaminated area to safe levels by removing or isolating contaminants. At mine sites, remediation often consists of isolating contaminated material in pre-existing tailings storage facilities, capping tailings and waste rock stockpiles with clean topsoil, and collecting and treating any contaminated mine water if necessary.
