Mining & Trade News

The Ex-Miners Association of Malawi ([EMAM] has embarked on a project to enhance skills of women in extractive industry in Neno District.

The initiative is targeted at imparting skills and knowledge on the women on best practices in small-scale mining ventures in order to transform their livelihoods.

It is also meant to drill the women on fighting abusive transactions by some local and international buyers of minerals, who allegedly take advantage of rural women’s knowledge gaps to reap them off by buying their minerals at very low prices.

The project which is financially supported by The Southern Africa Trust, an international NGO, headquartered in the Republic of South Africa is dubbed ‘Her in the Mines Neno District Dialogue.’ 

“This is a shared purpose aimed at addressing the challenges faced by women in the extractive industry in Neno District, Malawi. Our dialogue is a collaborative effort between the Ex-Miners Association of Malawi (EMAM), the Malawi Women in Mining Association (MAWIMA), and the support of The Southern Africa Trust,” EMAM’s Program Manager Richard Tamva said in an interview.

He said some of the project’s goals are to remove barriers for women to have access to information and participate in decision-making processes related to mining investments; and challenges women in the extractive industries undergo.

“We also want to enable the voices of women to be heard through organizing dialogues on challenges facing women due to mining investments, including benefits, compensation, damage, or loss. Apart from that, we want to create awareness among communities in extractive areas of their constitutional rights, land rights, and mining legislation,” he said.

This, he said, comes at a time when the government has placed mining as one of the drivers of the national economy.

EMAM’s President John Dick stressed the need to fully involve women on mining issues considering that they play an important role in day to day life.

He said: “It is sad that some people within the mining industry chain are being subjected to abuses – be it on prices or land rights – hence we feel this project is vital to address that.”

“Historically, the extractive industry has been characterized by gender disparities, with men dominating the sector, leaving women with limited opportunities to participate and benefit from it.”

“Therefore, women have not equally benefited from extractive industries rather are the most negatively impacted.”

“Besides, mining has been associated with poverty, violent conflicts, water and air pollution, land dispossession, food insecurity, and the spread of occupational diseases such as silicosis and TB, and this is time to reverse the trend.”

A grouping of civil society organisations (CSOs) working in the extractive sector in Malawi, the Natural Resources Justice Network (NRJN), has called on Government to put in place measures to punish extractive firms that do not comply with Extractive Industry Transparency Initiative (EITI) standard of Beneficial Ownership Disclosure (BOD).

A beneficial owner in respect of a company means the natural person(s) who directly or indirectly owns or controls a corporate entity.

All EITI implementing countries including Malawi are recommended to maintain a public register of beneficial owners whereby an extractive company is required to disclose information including the identity of the beneficial owner; implying the name, nationality and country of residence, and whether the owner is politically exposed.

However, Coordinator for NRJN Kennedy Rashid told Mining & Trade Review that the EITI standard on BOD requirement is still  facing challenges since requirement provisions for some companies do not allow disclosure of some information as per standard.

Rashid said: “The issue of beneficial ownership disclosure commitment was indeed agreed upon at EITI as per standard and the idea is to incorporate the standards for BOD in the country and enforce them per requirement.”

“In Malawi, as CSOs we have noticed some positive steps as in disclosure of the legal owners for the extractive companies in Malawi, as evidenced by the beneficial owner disclosure in the MWEITI reports.”

“Nonetheless, we have noted some challenges and gaps in the process. The Companies Act seems like does not provide for mandatory disclosure of beneficial ownership information as it does not require applicants to declare identity number, phone number, number and class of shares owned, which is required under the EITI regulations.

“in the register that is usually in the EITI reports, there is no clear information on how a particular entity or individual is a beneficial owner of an extractive company.”

He also said local citizens have limited access to the required information as many companies choose to put it only on online platforms.

Rashid said: “In Malawi, citizens have not been able to access information on beneficial ownership disclosure. This is due to the fact that most of the information is centrality managed.”

“Though the BOD proposal is to make information available and accessible, the aspect on accountability still remains a challenge.”

 “There is, therefore, a need to make BOD mandatory in Malawi with sanctions for non-compliance.”

The EITI Standard requires that EITI implementing countries should request, and companies disclose the nature of beneficial ownership of oil, gas and mining companies.

Commenting on the development, Coordinator for Chamber of Mines and Energy, Grain Malunga, however, said the Mines and Mineral Act already mandates disclosure of beneficial ownership for any mining or exploration company applying to invest in the country’s extractives sector.

He said: “The Mines and Minerals Act mandates the applicant to reveal beneficial ownership of a mining or exploration company including residential address.

“In terms of licensing, this is done in a transparent manner. Let us wait and see how the Mines and Minerals Regulatory Authority will operate.”

The Malawi Government developed the organizational structure for a Mining Regulatory Authority that we will begin operating once the new Act is operationalised.

The Malawi Government is advancing with plans to construct a national netball stadium at Njamba Park in Blantyre.
The Ministry of Youth, Sports and Culture says in a statement that it is, currently, inviting sealed bids from eligible contractors registered with National Construction Industry Council in the unlimited category to submit bids for the construction works.
The works will involve construction and completion of an indoor sports arena complete with associated external works.
The development follows President Peter Mutharika’s remarks in the run up to the 2019 tripartite elections that his government will develop sports facilities to create employment opportunities for the youth.
Mutharika pledged to construct stadiums in every district and for the big clubs Be Forward Wanderers and Nyasa Big Bullets.
Currently, the Ministry is also receiving tenders from eligible bidders for construction of Wanderers and Bullets stadiums in Blantyre.
In 2019/2020 budget, government allocated K200 million for the netball court and K1.6 billion for the construction of two stadiums for Wanderers and Bullets.
It also allocated K500 million each for upgrading works for Mzuzu Youth Centre and Kamuzu Institute for Sports.
Government has so far constructed sports stadiums in Karonga, Rumphi, Mangochi, Mulanje and Kasungu while construction is still under way for Ntcheu and Zomba Stadiums.
Malawi’s big stadiums include Nankhaka, Bingu, Silver Stadium and Civo in central region while in Blantyre there is Kamuzu and Chiwembe and in northern region there is Mzuzu stadium and Karonga.

Amidst concerns that graduates in mining related courses in Malawi universities and colleges are not being properly utilised locally, the government has challenged the private sector to scale up job creation.

Several mining related courses were introduced in Malawian universities and colleges several years ago under the World Bank and European Union funded Mining Governance & Growth Support Projects but there are grave concerns from stakeholders that the sector is failing to create jobs for the graduates leaving many jobless.

But in her response to a Mining & Trade Review questionnaire, Ministry of Mining Spokesperson Tiwonge Kampondeni said the courses are relevant and in line with the current trend in the mining sector.

“Government cannot employ all graduates. The private sector – which is touted as the engine for development – should create such jobs,” she said.

However, Kampondeni said it is envisaged that once large-scale mining takes place, many graduates will be employed.

Apart from the newly introduced mining related courses at MUST and MUBAS, the University of Malawi (Chancellor College) is also providing courses in geology, according to Kampondeni.

She said: “As for skills development, we are working with the Ministry of Labour through Technical Entrepreneurial and Vocational Education and Training Authority (TEVETA) and Zantchito Skills for Development Project, under the British Council.”

“Ngala College has already started offering some of the courses that we need. Research has shown that one engineer needs 4 technicians and over 15 artisans.”

Kampondeni said the Ministry has intensified training programmes in the sector in response to increased small-scale mining ventures in the country

“We are engaging communities within the mining areas to formalise their activities,” said Kampondeni.

She explained that the government will continue to formalise small-scale mining through the formulation of cooperatives.

Recently, gold deposits were discovered by locals in areas around Milepa in Chiradzulu stretching to other areas in Zomba and Mulanje, along the banks of Namadzi River and other nearby streams.

The small scale miners interviewed in the areas complained that they lack proper detection and mining equipment, pleading with the government to come in and assist.

But Kampondeni said the role of government is only to provide a conducive environment for the private sector to perform.

I doubt if the Government can procure equipment for all miners looking at the Government resource envelope and competing needs,” she said.

The Malawi Federation of Women and Youth in Mining (MFWYM) says it has initiated a project to work with various stakeholders in addressing health challenges including sexually transmitted diseases, TB and HIV/AIDS in mining areas.

President of the Federation Annie Kamanga told Mining & Trade Review that the organization is planning to partner with mining companies and other stakeholders that can provide resources and infrastructure needed to implement health programs to improve working standards and the welfare of mining communities.

Kamanga said the Federation is currently engaging government at local, regional, and national levels to win support in policy terms, explore funding opportunities, and ensure coordination of efforts to improve health care situation in mining areas.

She also said the Federation is ready to collaborate with Non-governmental Organizations, community based organizations, charitable organizations and international organizations such as World Health Organization to acquire technical expertise, funding, and advocacy support to scale up interventions on health issues in minerals sector.

“It is through strategic partnerships with various stakeholders that we can address health challenges in mining communities,” Kamanga said.

Commenting on what the Federation has on the table as core activities, she explained that the Federation will conduct education and awareness campaigns on the risks and prevention methods for STDs, TB, and HIV/AIDS to women and youth in mining.

“We will also implement and enforce strict health and safety regulations in mining operations to prevent injuries and conditions like scoliosis, and provide ergonomic support and training to reduce the risk of musculoskeletal disorders,” said Kamanga.

She also said that since they will be working with support groups, community based organizations, health providers, and some international groups; they will strategize to ensure easy access to health facilities including regular check-ups and treatment as well as providing counselling services in order to provide emotional and mental health support to women and youth in mining.

Kamanga urged government to develop and enforce policies that can prioritize health and safety of women and youth in the mining sector.

She further called on the government to provide training in capacity building for women and youth in mining areas to enhance their skills in diagnosing, treating and managing health conditions prevalent in these communities.

Kamanga recommended that government enacts and starts enforcing laws that protect the rights of women and youth in mining communities including access to health care, safe working conditions, and protection against discrimination and exploitation.

“By taking these actions, the government can play a crucial role in supporting initiatives aimed at improving the health and well-being of women and youth in mining areas, ultimately contributing to sustainable development and social equity,” said Kamanga.

MFWYM emerged from the recent merging of Malawi Women in Mining (MAWIMA) and Women in Energy, Extractives and Mining (WEEM).

Government says it is working on establishing a loan fund to finance operations of artisanal and small-scale miners (ASMs).

The move follows complaints from ASMs that they fail to acquire financing to pursue their projects as many banks in Malawi regard ASM operations as risky.

Director of Mines in the Ministry of Mining Samuel Sakhuta told Mining and Trade Review that his Ministry is working with the Ministry of Finance to come up with the revolving fund for the ASMs.

“We have requested the Ministry of Finance to consider providing a package for procuring equipment for ASMs which when the people repay the loans, the money will also be given to others to develop their projects,” Sakhuta said.

Sakhuta also said the government will continue to lobby with lending institutions such as banks to consider loan services for ASMs. 

MD for Maleta Gems and Jewels Percy Maleta told Mining and Trade Review recently that a revolving fund is the only way to alleviate the financial challenges faced by small scale miners in Malawi. 

Maleta, whose firm is a key player in the ASM subsector, said that a revolving fund will enable the small-scale miners to increase production, create more jobs and bring more forex into the country through exportation of minerals including gold and gemstones.

He said: “Let us appreciate the fact that gold mining in Malawi is done 100 percent by small scale miners and so far over K5-billion has been spent to buy gold by the Export Development Fund (EDF), and this has been achieved without any financial support. Imagine if these small-scale miners were empowered with capital boosts. The contribution would be much more. The same applies to gemstones.”

Maleta said that it is painful to the ASMs to see that the mining sector is not being financially supported by government yet other economic sectors are heavily supported technically and financially citing agriculture which is enjoying substantial support through projects like the Agricultural Commercialization (AGCOM) and the National Economic Empowerment Fund (NEEF).

“It pains to read, hear and see that our counterparts in small-scale agriculture are heavily supported technically and financially, talk of extension workers/officers, AGCOM with its billions of kwachas to support the cooperatives and recently NEEF, nothing is being done to small scale miners other than hearing from the government that mining is the main thing and touted to replace agriculture in the coming years. How do we achieve this without investing in the mining sector?” Maleta questioned.

Civil Society Organizations (CSOs) working in the extractive sector have reported to the International Monetary Fund (IMF) the challenges that are dogging Malawi’s mining sector which, according to them, include lack of transparency and accountability; poor implementation of policies; lack of community consultations on Corporate Social Responsibility (CSR) projects, community’s lack of access to vital reports and information and; corrupt practices.

 The CSOs presented these challenges to the IMF team at a meeting in Lilongwe. The IMF was in the country to meet various stakeholders including the CSOs, the Central Bank, the Judiciary and various government agencies to diagnose issues of governance, mining and land sectors.

The IMF team called on the meeting with the CSOs, and the agenda included general rule of law issues; contract enforcement; property rights; and functioning of the judiciary.

Responding to IMF questions on challenges the sector is experiencing, Board Chairperson for Human Rights Consultative Committee (HRCC) Robert Mkwezalamba alleged that Government is not committed in implementation of some policies including inspection of the mines.

Mkwezalamba cited that whenever an issue is reported to the Ministry of Mining or District inspection team, they inform the mining company of their plans to inspect the mine, which gives room to corruption.

 “The Ministry seems to be serious with a mining company when the license expires but when in operation not much is done in terms of inspection.”

On CSR, Mkwezalamba said there is need to ensure that the local communities are given an opportunity to decide on their needs despite it being not compulsory to the company.

He said: “The contractual agreements currently being signed by the Government and multinational companies should benefit the people of Malawi.”

“CSR is an issue considering that it is 100% determined by the companies and the communities have no say.”

“They need to look at the power of the community because at the end of the mining project someone benefits while someone does not despite being impacted.”

On transparency and accountability issues, the CSOs centered on the licensing and signing of mining development agreements whereby they lamented that it remains a challenge to know how the two are awarded.

Coordinator for Natural Resources Justice Network (NRJN) Kennedy Rashid told the team that though results of both the World Bank funded Airborne Geophysical Survey dubbed Kauniuni and Geological Mapping and Mineral Assessment Project (GEMMAP) were launched to the public, the problem remains accessibility of the two.

Rashid said: “The Kauniuni and GEMMAP reports are out but for you to access them you need to buy, and from there you need also to hire a geologist to interpret the technical reports for you.”

“Another challenge with the mining sector is that we have a new that has established the Mining Regulatory Authority law but no regulations hence we are still using the old one.”

 “Of course, when you ask the Ministry of Mining, they tell you they have developed the regulations and are with the Ministry of Justice, the question is how do you develop regulations while you have not funded the Authority.”

The meeting attracted CSOs including; HRCC, the Council for Non-Governmental Organisations in Malawi, NRJN, Sustainable Rural Community Development, Africa Windmill Project, Youth Initiative, Bwezi la Ana Foundation, Civil Rights Advocacy Centre, National Advocacy Platform, CARE Malawi, Tilitonse Foundation, Save the Children, Citizen Alliance, Centre for Mindset Change and Economists Association of Malawi. 

The IMF team was headed by Deputy Division Chief of Fiscal Operations in the Fiscal Affairs Department Kenji Moriyama.

The mission to Malawi through diagnostic analysis is directly linked to the Extended Credit Facility (ECF) of the IMF.

An environmental activist Godfrey Mfiti has asked ASX-listed Chilwa Minerals, which is prospecting for heavy mineral sands in Lake Chilwa, and the Malawi Government to advance the project with caution in order to protect the environment.

Lake Chilwa Wetland is part of the Tentative list of Malawi in order to qualify for inclusion in the World Heritage List.

The Wetland is important for its waterfowl population. The lake has no outlet, and the level of water is greatly affected by seasonal rains and summer evaporation. It is also used extensively for fishing and bird hunting by the local communities as the Wetland Biosphere Reserve is home to one of the world’s most diverse populations of bird species.    

Mfiti, an environmental policy analyst, says in an interview with Mining & Trade Review that there is need for proper environmental management in executing the mineral prospecting project in such an environmentally sensitive area.

“It is important to balance development and conservation in sustainable ventures like Lake Chilwa project,” he says.

He points out that one main challenge in mining projects is decommissioning, whereby miners leave the mining location neglecting environmental rehabilitation.

“We are aware that Lake Chilwa is heavily hit by climate change and environmental degradation whereby the area along Domasi and Matandani Rivers lost several dykes during Cyclone Freddy induced floods. Therefore, if this project is not handled properly, it will in the long-run heavily impact on the communities in Traditional Authority Kuntumanje in Zomba who are already at the receiving end of the negative effects of the project,” says Mfiti.

He suggests that as the project is progressing, stakeholders including the investor Chilwa Minerals should work closely with environmental specialists, policy holders and local authorities to ensure that it is conducted with utmost respect to Environmental Management Act of 2017 and community well-being.

Meanwhile, Chilwa Minerals has appointed Light Deep Earth (LDE), a South African-based company, to conduct metallurgical test work on samples extracted from the Mposa Deposit, located within the wider Lake Chilwa Project.

Chilwa Minerals MD Cadell Buss says in a statement that the metallurgical test work will be overseen by leading Perth based Mineral Sands Consulting firm TZMI, which previously completed work on the 2015 Lake Chilwa Scoping Study for the former owners of the project.

Buss says the primary goal of this testing phase is to validate and enhance the findings of previous studies.

“The focus of the metallurgical test work is to confirm previous results as well as identify optimisation improvements. Rather than stopping at the production of a mineral sands concentrate, the test work will assess the potential to produce individual mineral sands products,” says Buss.

He says samples from an ongoing drilling program will be delivered to the LDE laboratory in the upcoming weeks, with testing anticipated to take approximately three months.

“The results are expected to be disclosed approximately one month after the completion of the testing phase,” says Buss.

He explains that the commencement of the metallurgical test work marks another step forward in the company’s commitment to unlocking the full potential of the Lake Chilwa Heavy Mineral Sands Project. 

“The current metallurgical testing phase is a critical milestone that offers valuable insights into the deposit’s potential, promising to provide a foundation that guides the project’s future path,” says Buss

The Malawi Government is implementing a strategy to develop agriculture, mining and tourism sectors hence encourages resource firms to put in place measures to conserve the environment and attract tourists while pursuing the minerals.

ASX-listed Lindian Resources, which is conducting mine development studies for rare earth elements (REEs) at Kangankunde in Balaka, has announced that an ongoing metallurgical test work programme that is now close to completion has affirmed both high recoveries and concentrate grades.

Lindian Executive Chairman Asimwe Kabunga explains in a statement that the test work has affirmed recoveries of 70% total rare earth ore (TREO) achievable and concentrate grades ranging from 55% to 68% TREO, which confirms the globally superior quality of Kangankunde.

Kabunga says: “We are pleased to again confirm high recoveries and concentrate grades from our extensive metallurgical test work program which has been ongoing for the past 12 months and is now nearing completion.”

“The results are key for defining operational expenditure (OPEX) for our pending Feasibility Study for Stage 1 mine development and will be instrumental in benchmarking Kangankunde’s concentrate grade and recoveries against existing producers. We expect that the results will showcase Kangankunde’s very robust project economics.”

Lindian’s Chief Executive Officer, Alistair Stephens explains that these metallurgical results clearly demonstrate an advanced understanding of input parameters and material variability necessary for Kangankunde’s pending Stage 1 Feasibility Study.

“We are very encouraged by the results. We anticipate that we will also report final assay results for the Indicated Resource definition, and complete mine design and mining schedules this month. We are very close to the final stages of the construction contract for Kangankunde’s Stage 1 development, and we are confident this will confirm Stage 1 as a low-cost start-up operation,” says Stephens.

Further high-grade intersections from Kangankunde infill drilling

Meanwhile, Lindian has also reported that assay results received for a further 14 holes of the Phase 3 infill drilling program continue to define mineralisation continuity.

The Phase 3 program included 45 drill-holes for 4,886 metres, and the assays reported within are from a total of 14 drill holes reverse circulation (RC) holes.

Stephens reports that all holes assayed demonstrate extensive intersections of mineralisation to end of hole, are non-radioactive and have significant percentages of critical REEs neodymium and praseodymium (NdPr).

Significant intersections include:

❖ 119 metres @ 3.77% TREO from surface to EOH in KGKRC090

❖ 120 metres @ 3.66% TREO from surface to EOH in KGKRC116

❖ 80 metres @ 3.59% TREO from surface to EOH in KGKRC118

❖ 150 metres @ 3.38% TREO from surface to EOH in KGKRC113

❖ 100 metres @ 3.29% TREO from surface to EOH in KGKRC121

❖ 80 metres @ 3.29% TREO from surface to EOH in KGKRC117

He reports that the average grade of rare earths critical metal elements neodymium-praseodymium (NdPr) are over 20% of TREO.

Stephens says: “The results from this infill drill program further demonstrate Kangankunde’s excellent characteristics – high grade, which is consistent across very broad intersections, a high NDPr ratio, and of course, the material is non-radioactive, a unique feature of the asset.”

“Results from the final 10 holes will be reported very soon and we will then be able to define an Indicted portion of the MRE as part of our Feasibility Study.”

Kabunga comments: “All the elements for our Feasibility Study are now rapidly coming together with these infill drilling assays being an important component of this. We look forward to reporting the Stage 1 Feasibility Study very soon, and in quick succession, commencing construction works.”

Drill assay results

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 mineral resource estimate (MRE) to Indicated status.

Lindian says in the statement that once the remaining assay results are received the resource model will be updated and applied to detail mine design and scheduling.

The areas 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.

Lindian’s team is, meanwhile, on the closing stages of completing the preferred provider in relation to the tender of works and contract terms.

The near term milestones for the company include infill drill program assays, Indicated Resource Estimation, Mine Design and Mining Schedules, determination of Capital estimates and Contract awards, and execution of the Feasibility Study.

 • Samples from the final 10 holes are currently at laboratory and will be reported shortly