Mining & Trade News

Artisanal and Small-scale Miners (ASMs) who export gemstones to overseas markets through the country’s airports have expressed concern over the conduct of the Malawi Defence Force (MDF)saying its officers at the airports are demanding too many documents in order to allow them export the minerals, which is detrimental to their trade.

The ASMs alleged in separate interviews that MDF officers are demanding that an exporter submits a copy of a Reserved Mineral Licence, Small Scale Mining Licence, an Export Permit, Certificate of Inspection from the Ministry of Mining and the Malawi Revenue Authority [MRA] clearance copy for the shipment to leave Malawi.

The mineral dealers claim that this trend is common at Chileka and Kamuzu International Airports such that a number of shipments are being held by MDF.

The ASMs are demanding that the Ministry of Mining comes out in the open to report to the industry whether this is a new requirement for exporting mining products other than being silent as those involved are being ‘victimised’.

In an interview, Chikomeni Manda a Small-Scale Mining consultant and Managing Partner for Perekezi ASM Consultants said what is happening is retrogressive and ought to stop at any cost.

Manda said: “In the long term, this practice will be a recipe for corruption.”

“The Ministry of Mining should engage MDF on this, as it is demotivating those who are exporting legally. The government is promoting formality of the mining sector and at the same time giving a few people doing things in the right way a hard time; you tend to wonder what does government really wants?” questioned Manda.

MDF Spokesperson Major Emmanuel Kelvin Mlelemba said the military body is not aware of the said allegations.

“We have not received any information to that effect. You may cross-check with the Ministry of Mining on requirements for mineral exporters,” he said.

Ministry of Mining Spokesperson, Tiwonge Kampondeni said she needed to cross-check with diverse stakeholders before officially responding to the allegations.

ASX-listed Lotus Resources, which is advancing preparations to resume production at the Kayelekera Uranium Mine in Karonga, says the mine will provide plenty of benefits to Malawians through employment and training, local business development, goods and services procurement and community development.

MD for Lotus Keith Bowes said in his presentation at the Malawi Investment Forum that the mine will directly employ 450 Malawians, recruit 250 local contractors and potentially indirectly employ 5,000 people through new and existing business opportunities.

“On local business development, Lotus will continue  working with local and regional businesses to build their capacity as future suppliers to the Kayelekera mine, which is in tandem with the Company’s sustainability principles,” said Bowes.

He said the Company will endeavour to maximise procurement of goods and services from the national suppliers in order to economically empower Malawians.

“Lotus expects to spend up to US$50-million per year with local business, generating significant amounts of foreign currency some of which will need to be converted into Kwacha creating significant demand for the local currency thereby supporting the local currency,” Bowes said.

Lotus has also finalised a community development agreement which it expects to sign with the qualified Kayelekera communities once the Mine Development Agreement has been finalised.

The agreement empowers the local community to receive a minimum of 0.45% of the proceeds from the mine for development projects of their choice.

Bowes also said when production resumes, the Company will scale up its corporate social responsibility programme which includes supporting the clinics and schools in the area through various initiatives including provision of water and electricity.

“When Kayelekera reopens, it will also enormously contribute to the skills development of locals as the demand for both local employees and interns from local universities will rise,” said Bowes.

Malawi current laws provide for the mining company to pay to government various taxes including royalties charged at 5% of mine gate gross revenue, corporate tax charged at 30% of net profit after tax, various import duties, withholding taxes and resource rent tax calculated at 15% of net profit after tax. 

With all of these, Lotus regards the tax base in Malawi as uncompetitive and Bowes said the Company is negotiating for a Mine Development Agreement (MDA) with the Malawi Government to create a win-win situation between the investor and the nation by reviewing these taxes which include the resource rent tax that does not exist in other mining jurisdictions such as Namibia where the previous tenement holder for Kayelekera, Paladin Energy, has resumed production in light of a competitive tax base and a favourable market dynamics for uranium.

Paladin Energy put the Kayelekera Uranium Mine on care and maintenance in February 2014 following a slump in the prices of yellow cake in the aftermath of the Fukushima Nuclear Disaster in Japan which led to closure of a number of nuclear power plants globally.

However, in its quarterly activities report ending March 31, Lotus indicated that uranium spot price peaked at over US$100/lb during the quarter, and term price, which informs long-term contracts with utilities, reached US$80/lb.

In light of the favourable market conditions, Lotus said in the report that it has initiated a Front-End Engineering Design (FEED) program to validate and update costs and timelines determined in the Restart Feasibility Study, identify critical long lead items and early works, and complete detailed design to prepare Kayelekera for restart.

While it continues negotiating for the MDA, Lotus said in the report that it has also appointed a debt advisor to facilitate debt for the Kayelekera Mine restart.

The Ministry of Mining is courting global investors to take advantage of the ongoing reforms in Malawi’s sector and invest in the sector, which offers abundant opportunities.

Director for Mines in the Ministry of Mining Samuel Sakhuta said in his presentation at the Malawi Mining Investment Forum that Malawi has untapped mineral wealth including critical minerals essential for global energy transition and industrial development.

Sakhuta said: “Malawi offers a compelling case for investment due to its abundant mineral resources, stable political environment, and a range of incentives.”

“Investors are encouraged to take advantage of the global energy transition to explore opportunities in critical minerals such as rare earths whose deposits are in abundance and also development minerals such as limestone vital for infrastructure development projects like road construction and cement production.”

“The transition to clean energy necessitates the exploitation of critical minerals, positioning Malawi as a key player in the global energy landscape.”

In addition to mineral exploration, Sakhuta emphasized the potential for leveraging mining to enhance agricultural productivity through the local production of fertilizers.

 “Mining can play a pivotal role in supporting agricultural growth by providing the raw materials needed for fertilizer production, thereby reducing dependency on imports,” he said.

Sakhuta explained that the Malawi Government is carrying out various reforms and offering several incentives aimed at attracting and retaining investors.

 “Malawi offers a conducive investment climate with measures such as security of tenure, transparent contract negotiations, and tax incentives,” he said.

Sakhuta said as part of the reforms, the government has established the state-owned mining company to partner the private sector in pursuing strategic mining projects.

He said the government has also established the Malawi Mining and Minerals Regulatory Authority to streamline licensing processes and enhance regulatory oversight.

In his address, CEO for Standard Bank Philip Madinga called for collaboration among stakeholders to ensure sustainable growth of Malawi’s mining sector.

“If we are to reach our goal of raising the Gross Domestic Product (GDP) from 0.8 % to 10 % then we must not underestimate the power of collaboration between the public and private sector, as through strategic partnerships and innovative financing mechanisms, we can pave way for transformative growth and prosperity,” he said.

Madinga also urged stakeholders to prioritize infrastructure development, particularly in energy and transportation as essential enablers for mining sector growth.

“Investment in infrastructure is not just a necessity, it is a catalyst for unlocking Malawi’s mining potential,” he said.

Commenting on the delays in finalizing Mining Development Agreements (MDAs), Madinga called for streamlined processes and proactive engagement to expedite investment decisions urging government to consider the importance of balancing regulatory requirements with the urgency of attracting investment to the sector.

Years are elapsing while the Malawi Government continues negotiating for a Mine Development Agreements (MDA) with Australian firm Lotus Resources to resume uranium mining at Kayelekera in Karonga

As reported in our article on Page 6, mining at Kayelekera will come with plenty of benefits to Malawians through employment and training, local business development, goods and services procurement and community development.

Lotus expects to spend up to US$50-million per year with local businesses generating a significant amount and in addition, the Company will execute community development projects having finalised a community development agreement, and also scale up corporate social responsibility projects in the area including assisting schools and clinics.

But all these benefits meant for Malawians are awaiting the finalisation of the MDA for Kayelekera. We, therefore, believe the negotiating parties are being unfair to the expectant beneficiaries in delaying conclusion of the negotiations.

Lotus MD Keith Bowes is quoted in our article as saying the bone of contention is Malawi’s fiscal regime which he has described as uncompetitive in comparison to those of other countries such as Namibia, where another Australian firm Paladin Energy which previously owned the rights for Kayelekera has resumed uranium mining at its Langer Heinrich Mine.

We agree with Bowes that there should be a problem with Malawi’s fiscal regime which is leading to failure by investors to venture into large scale mining.

We, therefore, appeal to the Malawi Government to undertake an independent survey of the fiscal regime of other countries mining industrial minerals like uranium and come up with a competitive fiscal regime that should attract investors to start mining.

We believe if the country develops a competitive fiscal regime, there will be no need for investors to negotiate MDAs as they will just apply what is in the country’s laws.

It is high time, Malawi started reaping from its mineral potential to address problems such as high rate of unemployment and shortage of foreign exchange for importing essential commodities.

Mining is a business and any mining company requires a return on investment. We, therefore, believe that such being the case Malawi can host dozens of investment fora but no foreign mining investor will venture into large scale mining if the fiscal regime is not competitive. Our leaders will only continue singing the same song that Malawi is rich in minerals at high profile functions without any mine to show.

• Resource now among world’s largest and most strategically significant deposits
• Mineralisation remains uniquely non-radioactive

ASX-listed Lindian Resources says it has defined an Indicated Category Resource of 61 million tonnes @ 2.43% Total Rare Earth Ore (0.5% TREO cutoff grade) within an updated Mineral Resource Estimate (MRE) of 261 million tonnes grading 2.14% TREO for its Kangankunde Rare Earths Project in Balaka.

The MRE update follows the Phase 3 infill drilling program completed in the third quarter of 2023, which added 45 drill holes for 4,886 metres of drilling.

CEO for Lindian Alistair Stephens says in a Press Statement that the Indicated Resource includes a higher-grade component of 25 million tonnes grading 3.26% TREO (2.5% TREO cutoff grade) and contains 300,000 tonnes of neodymium-praseodymium (NdPr) with NdPr ratio averaging 20.2% of TREO.

Stephens says the higher-grade component of the Indicated Resource will be significant for the Stage 1 Feasibility Study to be published this quarter.

“The Indicated portion of the MRE is an excellent outcome and exceeds our expectations in terms of tonnage and grade, particularly when taking into account the higher grade 25 million tonne component which likely underpins multiple years of production under our Stage 1 development plan,” he says.

Lindian’s Executive Chairman Asimwe Kabunga comments that “Lindian is pleased to deliver another key milestone central to its near-term goal of bringing the fully permitted Kangankunde project into production and establishing the world class project as a dependable long-term supplier of rare earths concentrate to global markets. “

“This updated MRE reaffirms the project’s status as a top tier asset that will deliver material benefits to Malawi, the local community, key stakeholders and our shareholders. Other milestones to be reported shortly will reinforce Kangankunde’s strategic value,” says Kabunga.

The resource estimation at Kangankunde utilised multi-element relationships from rock chemistry and rare earth mineralisation to define six domains within the overall carbonatite intrusion. These domains were assessed against geological understanding and field observations from surface mapping and drill core and were considered appropriate representations of the mineralisation distribution.

Grade tonnage curve analysis of the resource shows the robustness of grade continuity in the resource with a reduction in tonnes and increase in grade with increasing cut-off.

Mineral Tenement and Land Tenure Status

The Kangankunde Rare Earths Project is located in Balaka District in southern Malawi, 90 km north of the commercial city of Blantyre. The mineral tenements include a Medium Scale Mining Licence which is surrounded by an Exploration Licence.  The Exploration and Mining Licences have an Environmental and Social Impact Assessment Licence issued under the Malawi Environmental Management Act No. 19 of 2017. Both licences are in good standing with no known impediments.

Geology

The Kangankunde Hill rises to a height of up to 200 m above the surrounding plain. The deposit contains a central zone of carbonatite rocks passing outwards to a series of zones of altered breccias of varying composition of carbonatite and wall rock clasts in a carbonatite matrix, and ultimately into unaltered gneiss host rock. Similar to many rare earth deposits, the main rare earth containing mineral in the deposit is monazite.

Estimation domaining utilised multi-element relationships from minor rock chemistry and rare earth mineralisation to define five domains within the overall carbonatite limits. These domains were assessed against geological understanding and field observations from surface mapping and drill core and were considered appropriate representations of the mineralisation distribution. Leapfrog was utilised to build mineralisation domain wireframes and to code sample intervals with the applicable domain.

Drilling Techniques and Hole Spacing

Drilling completed at the Kangankunde Rare Earths Project and used to support the MRE includes 12 diamond core (DD) holes totaling 2,387.4 metres, 117 reverse circulation (RC) holes totaling 16,424 metres, and eight RC holes with diamond core tails (RCD) totaling 3,080.7 metres. Drilling of all types totals 21,892 metres.

All holes are drilled from surface with various orientations depending on terrain constraints. RC drilling utilised a 5.25” (134 mm) face sampling hammer to generate one-metre samples, which are placed into large plastic bags marked with the hole ID and sample interval. Sample weights are recorded for each sample, with recovery maximised through use of PVC collars in upper portions of the collar.

Diamond drilling used a HQ3 size (63.5 mm diameter) with triple tube techniques used to maximise core recovery. NQ2 (50.6mm diameter) core was used for deeper drill holes. Drill core was collected from a core barrel and placed in appropriately marked core trays. Down hole core run depths were measured and marked with core blocks. Core was measured for core loss and core photography and geological logging completed.

Strong community, government relations

The Kangankunde Project has strong backing from both the local community and the Malawi Government. Though mining is yet to start at the site, Lindian executes a number of Corporate Social Responsibility (CSR) initiatives in the area which includes assisting Kangankunde Primary School with learning materials.

Minister of Mining Monica Chang’snamuno also visited Kangankunde where she hailed Lindian for fast-tracking works at the site. 

ASX-listed Lindian Resources, which is conducting mine development works at Kangankunde Rare Earths Project in Balaka, says the project is on track to be the next rare earth producer.

Lindian CEO Alistair Staphens said this in his presentation at Malawi’s first ever Mining Investment Forum at Bingu International Convention Centre in Lilongwe.

Stephens explained that studies have indicated that Kangankunde is destined to become a rare earth market leader producing best-value, most cost-efficient rare earths concentrate.

He said the project will also be an environmentally sustainable producer of rare earths as studies have also proved that the product in non-radioactive.

Meanwhile, Lindian has announced final drill assay results for Kangankunde Rare Earths Project that show continuous high-grade mineralization at the site which includes;

❖ 80 metres @ 3.83% TREO from surface to EOH in KGKRC099

❖ 140 metres @ 3.20% TREO from surface to EOH in KGKRC096

❖ 100 metres @ 3.09% TREO from surface to EOH in KGKRC097

❖ 80 metres @ 2.72% TREO from surface to EOH in KGKRC109

❖ 150 metres @ 2.62% TREO from surface to EOH in KGKRC093 including, o 90 metres @ 3.54% TREO from 58 metres

❖ 150 metres @ 2.60% TREO from surface to EOH in KGKRC098 including, o 21 metres @ 4.49% TREO from surface, and o 66 metres @ 3.20% TREO from 70 metres.

Stephens explained in a Press Statement that the average grade of rare earths critical metal elements neodymium-praseodymium (NdPr) remains consistent at ~20% of Total Rare Earth Ore (TREO) with grades of up to 23.5% TREO recorded.

He said: “Assays for the Phase 3 drill program are now finalised. Lindian’s technical team has completed more than 20.7 kms of drilling at Kangankunde in less than 15 months to define what is one of world’s best rare earths deposits with excellent grade, non-radioactive material, a high NdPr ratio and enormous scale.”

“Our technical team is to be congratulated for their efforts. We will soon report an updated Mineral Resource Estimate that includes the Indicated component of the Resource as well as an Ore Reserve Estimation which is another meaningful benchmark to assess the project’s unlocked value. Following this will be further updates on mine development capital expenditures (capex) and operating expenditures (opex) prior to the release of the Feasibility Study this quarter.”

Lindian’s Executive Chairman Asimwe Kabunga explained that Kangankunde’s project developmnent continues to advance very rapidly with multiple workstreams advancing concurrently.

 “We can commence construction in the coming months. Interest in the asset continues to build from a broad number of interested parties with many keenly awaiting our Feasibility Study. We are confident it will showcase the project’s compelling economics,” he said.

In August 2023, Lindian announced its maiden Mineral Resource Estimate (MRE) for the Kangankunde Rare Earths Project of 261 million tonnes averaging 2.19% TREO above a 0.5% TREO cut-off grade.

The infill holes reported are designed to provide sufficient data to increase the confidence level of a portion of the MRE to Indicated status.

The data from all the Phase 3 drilling is currently being used to update the resource model which will be applied to detail mine design and scheduling and Ore Reserve Estimation.

The areas which were targeted by the Phase 3 infill program are those considered most likely to define initial feed for operation of the Stage 1 Processing facility. These are; the northern area of the central carbonatite complex, the western area of the central carbonatite complex; and the south-eastern area of the central carbonatite complex.

We join a number of stakeholders in the minerals sector in congratulating the Malawi Government for successfully holding the inaugural Mining Investment Forum from April 23 to 24.

As reported in our lead article; at the forum, private firms in mining sector raised a number of challenges that are impeding development of mining projects.

Chairman of Akatswiri Holdings, who represented the private mining firms at the opening ceremony of the Forum, told State President Dr Lazarus Chakwera who officially opened the Forum that the challenges include delays in signing Mine Development Agreements (MDAs), inadequate transportation and energy infrastructure which increases operational costs, shortage of skilled labor and technical expertise, local market volatility and price fluctuations which affect profitability, and illegal mining activities that are undermining formal sector operations and revenue collection efforts.

We also feel the Malawi Government must seriously address these challenges in order to enable the sector develop.

Government indeed needs to find a way to ensure that MDAs are finalized in a short period of time to avoid frustrating investors as the world commodity market is very volatile hence these delays can affect the feasibility of projects in the long run.

Malawi also needs to address transport and energy issues affecting mining projects. The Ministry of Transport and Public Works has to prioritize construction, rehabilitation and maintenance of roads to mining sites.

It is sad that mining sites such as Wimbe area in Kasungu where Shayona Cement Corporation has limestone mines and a state-of-the-art clinker plant and Chimwadzulu in Ntcheu where Mwalawanga Mining has a mining licence for the highly priced corundum have poor access roads.

As Minister of Transport and Public Works Jacob Hara is quoted in our article on this page, arrangements should be made between mining companies and government to ensure that roads to these economically productive sites are in good condition.

Likewise, the Ministry of Energy needs to ensure that there is power available for mining companies. It becomes expensive hence frustrating for investors to be using diesel generators to power their heavy-duty operations.

There is also need for interventions to address shortage of foreign exchange which is affecting importation of various equipment for mining and mineral processing.

Notably, this problem is crippling the cement producers as for a long time, they have been complaining that they are not able to import spare parts for their plants and raw materials due to foreign exchange shortages, which is frustrating.

Minister of Transport and Public Works Jacob Hara says the Malawi Government is planning to introduce electric locomotives to replace the diesel-powered trains.

Hara said the development will help reduce reliance on traditional diesel-powered engines as it is proven that in the long term it is much cheaper to use electricity than diesel.

The Minister said this when he addressed the Malawi Mining Investment Forum in Lilongwe where he emphasized that Government is in the process of developing the country’s transport network in order to facilitate development of the key economic sectors namely agriculture, mining and tourism.

 “We will be starting this big project this year probably in three months’ time. We are currently working on our first stage of the Beira corridor connection, our plan is to electrify the line once we hit Nsanje all the way to Blantyre then through Lilongwe and connecting to Zambia,” he said.

Hara emphasized the crucial role of an efficient transport system in facilitating the movement of materials and supplies essential for mining operations.

“The transport sector is the number one enabler for national development, this is why in this fiscal year’s budget we have incorporated funds for very specific projects including those in mining areas,” he said.

On water transport, Hara said the Tanzara corridor will be revitalized to connect it to Chilumba which will help to boost water transport to Chipoka.

“We want to bring back life to Chipoka as we plan to make it one of the biggest ports in the region,” said Hara.

Besides water and rail transport, the Minister also said Government is in the process of upgrading the road network across the country.

He, however, spelt out the need for collaboration between mining companies, the Ministry of Mining and the Ministry of Transport to come up with plans that can benefit the two sectors.

Hara said: “We need to address the mentality that the government owe us good roads. Everyone should be responsible for providing the good roads through the road tolls and we can have special arrangements with the mining companies focusing on maintaining the roads that they use frequently.”

“Malawi’s decision to join the Central Corridor Transport Facilitation Agency shows the government’s determination to address challenges in the mining sector and elevate transportation infrastructure to new heights.”

“With ambitious plans to revitalize rail networks and enhance road connectivity, Malawi is heading to the new era of economic growth and development for the betterment of its citizens and the broader international community.”

Private sector players in the minerals sector have urged the Malawi Government to address a myriad of challenges dogging development of mining projects in the country in order for the sector to adequately contribute to the country’s economic development.

The resource firms tabled their concerns to State President Dr. Lazarus Chakwera in Lilongwe when he officially opened the first ever Malawi Mining Investment Forum that was held from April 23 to 24.

Chairman of Malawi’s leading mining and mineral consulting group Akatswiri Holdings Hilton Banda, who made a keynote presentation on behalf of the private sector captains in the sector at the Forum, said the major challenges private investors are encountering in the sector include delays by the government to conclude Mine Development Agreements (MDAs) for projects, which is frustrating investors.

Banda told the President that the other challenges include inadequate transportation and energy infrastructure which increases operational costs, shortage of skilled labor and technical expertise, local market volatility and price fluctuations which affect profitability, and illegal mining activities that are undermining formal sector operations and revenue collection efforts.

“This is a young sector, and its challenges are enormous, and therefore, we will continue to count on Government’s support to realize the full potential of this most promising sector,” said Banda, hinting that with current projects’ projection, mining will be contributing more that 10% to Malawi’s Gross Domestic Product (GDP) by 2030.

He also made recommendations to the President to encourage Malawians to invest in mining and its value chain, facilitate financing for mining projects by collaborating with financial institutions, and simplify bureaucratic procedures for acquiring licenses and signing agreements to avoid delays.

The mineral sector executive also advised government to study taxation models of successful mining countries and establish a competitive tax rate to attract investment, increase the capacity of energy generation for value addition, establish a mining culture among Malawians by including lessons on mining in primary and secondary schools, and establish analytical laboratories for geosciences in the country.

“Sustainable development of the mineral sectors in Africa, among others, depends on sound and comprehensive mining policy, fiscal regimes and legislative frameworks, which take into account prevailing international best practices, attract investment and enables the citizenry across the continent to realize optimal benefits from mining,” he said.

In his speech marking the official opening of the forum, Chakwera hailed the holding of the event saying it will help to answer some of the questions to challenges being experienced in the sector.

Chakwera also said the forum is a platform where players in the sector can network, learn, experience and unlock various opportunities.  

He said: “Today we are talking of precious minerals that God blessed us with. Today we have known that apart from farming, our soils have precious minerals that are on high demand across the world.”

“Today the question should be, having all these precious minerals in our soils why Malawi still remains poor. These questions must be answered through this mining investment forum in order to correct where the problem generates.”

“My idea in coming up with Agriculture, Tourism and Mining (ATM) week is to ensure that there is collaborative effort in alleviating challenges affecting our economy.”

Chakwera stressed that ignorance and negligence are the main challenges killing the mining sector as many Malawians are not aware of the mineral wealth lying across their land and also that some are conducting the mining business unlawfully.

He said: “Firstly, ignorance is the main cause why as a nation we are not benefiting much from our mineral resources.  Many of us we just walk on our land not knowing what is inside our land.”

“Secondly, is negligence whereby everyone just does whatever he or she wants. As a nation, we need to set up governing bodies and organizations to ensure security of the minerals and local beneficiation.”

“For that reason, my Government established the mining authority to review all mining development agreements in order to negotiate a win – win deal.”

“Even in Mangochi where people including foreigners were just mining gold unlawfully, I sent MDF (Malawi Defense Force) team to bring sanity and order so that they all mine according to the law and develop our economy.”

Chakwera also said his government is working to ensure that ASMs get access to loans from the banks to develop their businesses.

In her speech, Minister of Mining Monica Chang’anamuno said the forum is a shared vision to unlock the immense potential of the nation’s mining sector and pave the way for sustainable growth and development.

Chang’anamuno said the presence of key players in the sector including the President is a testament to government’s dedication to the advancement of the country’s mining industry.

She said: “The opportunities that lie before us are vast, and the challenges we face are significant. However, I am confident that through collaboration, innovation, and a shared sense of purpose, we can overcome these hurdles and unlock the full potential of our mining sector for the benefit of all Malawians.”

“This forum serves as a platform for dialogue, exchange of ideas, and forging partnerships that will drive sustainable investment and growth in our mining industry.”

“It is an opportunity for us to showcase the rich mineral wealth of our country, highlight the investment opportunities available, and demonstrate our commitment to responsible and inclusive mining practices.”

Chang’anamuno urged stakeholders in the sector to work together to leverage mineral resources, build capacity, and create a conducive environment for investment that will generate long-term benefits for the nation and its people.