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Mining & Trade News

Malawi Online News
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Mining

EDF IRKS ASMS BY HALTING PURCHASES OF PRECIOUS STONES
June 18, 2026 / Wahard Betha
...
Mining

Fuel crisis bites industries
April 28, 2026 / Marcel Chimwala
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Mining

MMRA sheds light on mining agreements
April 17, 2026 / Jacqueline Monjeza
Mining
Kasiya definitive feasibility study advances with geotechnical program nearing completion
August 07, 2025 / Modester Mwalija

ASX-listed Sovereign Metals says it is making major progress towards completing its Definitive Feasibility Study (DFS) for the Kasiya Rutile-Graphite Project in Lilongwe, following the successful completion of extensive geotechnical investigations across critical infrastructure locations.

Sovereign MD and CEO Frank Eagar explains in a press statement that more than 400 individual tests have been conducted at the Kasiya site, targeting all major components of the project including the planned mining operations, processing plant, tailings storage facility (TSF), and the raw water dam. The work was carried out by ARQ Geotech (Pty) Ltd under the oversight of the Sovereign-Rio Tinto Technical Committee.

He describes the completion of the geotechnical fieldwork as a “significant milestone” in the company’s push toward de-risking the project.

“Completing these comprehensive infield geotechnical programs marks another significant milestone towards the completion of our DFS and another step in our systematic approach towards the development of Kasiya,” says Eagar.

He says that the investigations involved a wide range of surface and deep testing methods, including rotary core drilling, cone penetration tests with pore pressure measurements, dynamic probing, seismic surveys, auger drilling, test pitting, and trenching.

“These techniques were used to assess soil and rock characteristics beneath proposed infrastructure zones such as roads, processing areas, accommodation camps, power stations, and water storage sites. Samples collected during the program are also undergoing laboratory analysis to verify strength and composition”, says Eager. 

He points out that the preliminary findings from the investigation indicate favourable subsurface conditions that align with the regional geological expectations.

Eagar says, “the stratigraphy encountered across most infrastructure areas was generally consistent and comprised layers of topsoil, aeolian and colluvial transported materials, and reworked residual gneiss, transitioning into deeply weathered rock and then into hard bedrock derived from gneissic formations”

The consistency in geological profile will allow for more standardised foundation designs and construction approaches across the project site.

“This level of uniformity enables us to reduce engineering complexity and potentially lower construction costs,” he says.

He also adds that significantly ferricrete; an iron-rich, cemented soil layer found within the transported horizon has been assessed as potentially suitable for reuse as engineered fill. If confirmed through further testing, this could reduce the need for imported materials during construction and enhance cost-efficiency.

The data collected will be instrumental in finalising foundation and earthworks designs for infrastructure, improving slope stability planning, and evaluating the suitability of materials for construction.

 “This data will inform the design of foundations, slope stability, and material suitability ultimately contributing to safe, efficient, and cost-effective development,” says Eagar.

Eagar further explains that the geotechnical program represents one of the final critical technical components of the DFS, which is expected to guide investor and financing decisions. The findings are already being integrated into detailed engineering design work to optimise infrastructure placement and construction strategies.

Eagar remains confident in the project’s direction and said the work done so far reflects strong execution across all DFS workstreams.

“It reinforces our confidence in the viability of Kasiya as a world-class source of natural rutile and graphite,” he says.

As the DFS nears completion, Eager says Sovereign continues to follow a disciplined and technical approach to advance what it considers a genuine Tier-1 critical minerals project by making sure that each layer of progress brings Sovereign closer to establishing Malawi as a key player in the global supply chain for critical minerals

. Kasiya is the largest undeveloped natural rutile deposit in the world and also hosts significant quantities of flake graphite. Both minerals are classified as critical raw materials due to their use in technologies such as pigments, titanium metal, and lithium-ion batteries. 

Mining
New graphite tariff environment underscores Kasiya’s global significance
August 07, 2025 / Marcel Chimwala

ASX-listed Sovereign Metals has announced that at a time of unprecedented disruption in global graphite markets, with new U.S. tariffs fundamentally altering supply chain dynamics, the latest testwork on its graphite from the Company's Kasiya Rutile-Graphite Project in Lilongwe has delivered highly successful results.

The testwork focused on optimising the coating process for conversion of Kasiya derived spherical purified graphite (SPG) to coated spherical purified graphite (CSPG) while maintaining premium performance. The results will assist with ongoing offtake discussions with anode manufacturers.

Sovereign is developing Kasiya to potentially become the world's largest and lowest-cost natural graphite producer outside of China. MD and CEO Frank Eagar says: “Kasiya remains a primary rutile project, but our ability to also produce exceptional CSPG with world-class performance characteristics from our natural graphite concentrate is a further demonstration of the geopolitically strategic nature of Kasiya.”

“These new U.S. tariffs on Chinese graphite highlight the urgent need for reliable, high-quality alternatives. Kasiya's resource scale, long life, potentially lowest-cost non-Chinese producer, combined with our demonstrated technical excellence, positions us perfectly to serve battery manufacturers seeking secure supply chain diversification.”

Strategic Market Opportunity

The global graphite supply chain is experiencing fundamental realignment following the U.S. Commerce Department's 17 July 2025 announcement of 93.5% preliminary anti-dumping duties on Chinese graphite imports. Combined with existing tariffs, this creates an effective 160% barrier on Chinese graphite, fundamentally altering the economics for battery manufacturers seeking secure, cost-competitive supply chains. China currently controls approximately 75% of global graphite production and 97% of anode material processing, creating critical supply chain vulnerabilities that major battery manufacturers are now actively addressing.

Tesla, Inc. (Tesla) and Panasonic were among companies that opposed the new US tariffs, with Tesla’s submission to the U.S. Government stating that U.S. graphite producers have yet to demonstrate the “technical ability to produce commercial quantities” of graphite at the quality and purity required by Tesla and other battery cell manufacturers.

Eagar explains that once developed, Kasiya has the potential to become the world's largest and lowest-cost natural flake graphite producer, offering battery manufacturers a strategic alternative to Chinese supply chains for anode material feedstock.

“The latest successful coating testwork is a further demonstration of Kasiya’s increasing strategic importance,” he says.

Latest Testwork Validates Kasiya Graphite’s World-Class Quality to Anode Manufacturers

Optimisation testwork conducted by Prographite GmbH (Prographite) has once again demonstrated the exceptional characteristics of Kasiya graphite for CSPG production. The optimisation process successfully achieved target coating specifications and optimised inputs into the coating process while maintaining the premium performance metrics that position Kasiya graphite among the highest-quality sources globally.

Pitch coating is a standard refinement process where carbon-rich pitch material is applied to spherical graphite particles to create protective layers that enhance battery performance and longevity, turning SPG into CSPG. The latest testwork systematically evaluated pitch content to achieve optimal performance parameters.

 Key achievements from the process include:

• Process Efficiency Demonstrated:   Coating requirements optimised while   maintaining superior CSPG   characteristics.

• Premium Performance Maintained:   All target specifications achieved for   discharge capacity (>360mAh/g) and   first cycle efficiency (>94%).

• Physical Properties Achieved: Specific surface area (1.0 g/cm³) specifications met. Eagar explains that the data confirms that Kasiya graphite consistently delivers discharge capacity well above the critical 360mAh/g threshold while achieving first cycle efficiency above 94% - both key specifications for premium-quality natural graphite anode materials.

Customer Engagement Advances with Market Dynamics Creating Strategic Advantage

Eagar reports that initial samples of Kasiya fine flake graphite concentrate have been distributed to leading natural graphite anode producers and anode project developers.

He says these strategic engagements will support the development of offtake agreements while validating market demand for Kasiya's high quality battery-grade graphite.

“The Company continues advancing additional pilot-scale graphite concentrate processing to supply further concentrate material, with planning underway for a larger-scale concentrate processing run. These programs will support expanded customer qualification programs as development advances.” Eagar says.

Transport
Roads Authority reports progress on Makanjira road construction
August 01, 2025 / Modester Mwalija

Malawi’s Roads Authority has announced significant progress in the construction of the Chingo-Makanjira (S129) Road Project, with Phase I completed and Phase II set to commence.

The 95.65-kilometre road, will run along the southeastern shoreline of Lake Malawi, connecting Chingo Trading Centre to Makanjira Trading Centre, passing through key rural communities such as Mgoza, Mwanjati, Mdala, wa Bakili, Malindi, and Upile.

CEO of the Roads Authority, Engineer Ammiel Champiti, says in a statement that the total estimated cost of the project is US$77 million. Of this, US$28 million has been secured from the World Bank under the Regional Climate Resilience Program (RCRP Phase II).

“The remaining US$49.6 million is a joint contribution from the Saudi Fund for Development, OPEC Fund, and Kuwait Fund”, he says.

Champiti explains that all necessary funding has been secured and implementation is proceeding according to the requirements of all financing partners.

“We are pleased to report that the Saudi Fund for Development has issued a No Objection for the procurement of the design review and construction supervision consultant, a major step towards full implementation,” says Champiti.

Phase I of the project involved the successful reconstruction of the Litisa Reinforced Concrete Bridge, funded by the African Development Bank (AfDB) under the Post-Cyclone Idai and Kenneth Emergency Recovery and Resilience Project (PCIREP). The bridge is now under a one-year defects liability period.

Phase II will focus on remedial access works between Chingo and Makanjira, including culvert installation and preparatory earthworks.

Makanjira area, which has been struggling due to poor condition of the access road, is an agricultural area and has also a lot of small scale mining activities mainly involving the extraction of gold and other precious ores such as corundum. Roads, which handle more than 70% of internal freight traffic and 99% of passenger traffic, are the country’s most dominant mode of transport. Road transport is also important for international trade as it handles more than 90% of freight and passenger traffic for Malawi.

Malawi’s major imports include fuel and fertilizer which are mainly hauled by road through the seaports of Nacala and Beira in Mozambique, and Dar es slaam in Tanzania. Malawi’s other modes of transport include rail and water transport in Lake Malawi

Mining
Lotus moves towards Kayelekera uranium production with first feed into crushing circuit and SAG mill
August 01, 2025 / Admin

Lotus Resources Limited (ASX: LOT, OTCQX: LTSRF) (Lotus or the Company) is pleased to provide an update on its Kayelekera Uranium Project in Malawi (Kayelekera or Project), as process plant refurbishment work nears completion ahead of first product this quarter.  

HIGHLIGHTS

• Kayelekera SAG mill refurbishment completed, grinding media loaded and   mill restart achieved

• Hot commissioning of crushing, grinding, pre-leach and leach areas   underway

• Elution, precipitation, drying and packaging circuit commissioning underway,   ahead of first uranium oxide (U3O8) product this quarter

• Lotus remains fully funded with A$77.3m cash  at the end of June   (unaudited), and no debt drawn .

Lotus Managing Director Greg Bittar commented: “Following the completion of extensive mill refurbishment, alignment and grinding media loading, we have restarted the Kayelekera mill. With the mill being such a critical aspect of the processing plant refurbishment, achieving its restart is a terrific milestone ahead of production at Kayelekera.

Whilst in Malawi for the mill restart, we updated the Government of Malawi, including the Ministry of Mining, on restart plans and the steps towards production this quarter.

We are currently feeding mineralised waste through Kayelekera’s mill as we verify its performance before transitioning to feeding in ore. With first ore through the mill, the restart of production at Kayelekera is on track for this quarter.

PROCESSING PLANT HOT COMMISSIONING, MILL REFURBISHMENT COMPLETE AND RESTARTED

The Kayelekera processing plant is now undergoing hot commissioning, which involves initially feeding the plant with mineralised waste before moving to ore. The plant will run on mineralised waste until the correct densities are achieved in the leach and resin in pulp circuits. Following this, the feed will be changed to ore while reagents are added to start leaching the uranium. Commissioning of the elution, precipitation and packaging and drying areas is underway, with first uranium to be produced this quarter as planned. 

Mining
Mining not expected to transform Malawi economy – World Bank
August 01, 2025 / Modester Mwalija

The World Bank says while Malawi is on track to generate meaningful revenue from mining activities in the coming decade, the earnings will not be transformative enough to drastically change the country’s dire economic situation.

In its 21st edition of the Malawi Economic Monitor published in July 2025, the World Bank notes that government revenues from mining could rise to as much as 5 percent of Gross Domestic Product (GDP) by 2033 under an “unhindered” scenario and this would represent a substantial increase in domestic resources but would not be enough to overhaul the economy.

“This projected fiscal revenue would be significant but not transformative as it is approximately equivalent to the general budget support that Malawi used to receive from international donors before the 2013 Cashgate scandal,” the Bretton wood institution states.

The report explains that most of the mining income will come from corporate income taxes, followed by royalty payments and profit-sharing agreements. However, these earnings are expected to materialize gradually over the next five to 10 years and only if the government is able to implement existing fiscal policies effectively and see key mining projects through to completion.

The report says that in a “business-as-usual” scenario which includes only low- to medium-risk projects like Kayelekera and the Kasiya rutile mine, annual revenues could exceed US$200 million by the early 2030s, equal to around 10 percent of Malawi’s current total fiscal revenue, or 2 percent of GDP.

The Bank explains that, an “unconstrained” scenario includes more ambitious and higher-risk projects such as heavy sands in Makanjira, rare earths in Kangankunde and Songwe Hill, niobium in Kanyika, and graphite in Malingunde, potentially increasing government income up to 5 percent of GDP.

It reads: “New estimates indicate that government revenues from mining could reach up to 5 percent of GDP by 2033, depending on whether high-risk projects are completed and whether government can successfully capture revenues in line with the statutory fiscal framework.”

In addition to mining, the report highlights the importance of energy sector investments, citing the Mpatamanga Hydropower Storage Project as critical to Malawi’s long-term economic prospects.

The Bretton wood institution warns that ongoing power supply challenges including inconsistent generation and grid instability continue to affect industrial growth and service delivery and in response, the government is encouraged to fast-track projects like Mpatamanga to provide a more reliable and sustainable electricity supply.

It also states that, in May 2025, the World Bank Group’s Board of Directors approved a US$350 million grant from the International Development Association (IDA) to fund Phase 1 of the Mpatamanga Hydropower Project.

“The full project is expected to cost US$1.25 billion, with the remaining US$900 million expected to come from a consortium of development finance institutions.”

The report reads that the Mpatamanga project is one of the most transformational initiatives currently on the table. It will provide clean, firm energy to stabilize the national grid, reduce power outages, and support Malawi’s participation in regional power-trading markets, particularly through the Mozambique-Malawi Power Transmission Project.

The report also urges the government to implement reforms in the energy sector, including full adherence to Malawi Energy Regulatory Authority’s four-year electricity base tariff schedule. This will ensure the Electricity Supply Commission of Malawi (ESCOM) can cover operational costs, avoid debt accumulation, and invest in future upgrades.

“Despite political challenges, adherence to a cost-reflective tariff is important to enable ESCOM to effectively maintain the power network and save for future improvements,” the report advises.

The report concludes by urging Malawi to adopt urgent and targeted reforms both in mining and energy sectors to fully harness the benefits of ongoing mega projects and direct the country towards sustainable development.

Mining
Government moves to protect local coal, cement industries
August 01, 2025 / Modester Mwalija

The Malawi Government says it is putting in measures to protect local industries including cement and coal producers who have been complaining for a long time of unfair market competition from foreign products.

Public Relation Officer for Ministry of Trade and Industry Patrick Botha said in an interview that the government has begun introducing reforms aimed at protecting local industries.

“Local industries do get support in the area of duty waivers for capital equipment to support setting up or expansion and currently, cement import licenses are not being issued. That shows our commitment to protecting domestic production,” he said.

Botha highlighted the Ministry’s efforts to address Non-Tariff Barriers (NTBs but admitted this system relies on active reporting from affected stakeholders.

“We have already started implementing such reforms. The new policy on restricting certain imports is clear proof of this.”

Malawi’s coal and cement industries are facing mounting pressure due to what industry analysts say is weak trade protection as Malawi is party to regional trade agreements under Southern Africa Development Community (SADC) and Common Market for Eastern and Southern Africa (COMESA).

In a separate interview with Mining and Trade Review, Coordinator of the Chamber of Mines and Energy Grain Malunga says this uneven trade environment is hurting the mining sector.

He said that Malawi’s coal and cement industries are struggling to compete as cheaper imports continue to enter the market despite adequate local production capacity.

“It seems there is more of following country protection regulations than the protocol agreements. For example, Tanzania discourages Malawi coal from entering its market,” he said.

He also said that this restriction is particularly damaging to producers in the Northern Region, who are geographically closer to Tanzania than to the country’s major commercial hubs in Lilongwe and Blantyre.

Malunga explained that because the miners cannot access nearby markets, local coal becomes more expensive due to higher domestic transport costs. He bemoaned that Malawi’s own trade policies favour imports, saying “Malawi has favourable import terms for coal which makes local coal uncompetitive even within our own market and this scenario mirrors challenges in the cement sector, where foreign brands continue to dominate”.

Malunga said action is needed at border points where exporters often delay or face obstacles for shipments “due to security officers’ unruly behaviour.”  

“The behavior of security officers at borders should be reviewed. They must respect official documentation from the Ministry of Mining,” said Malunga.

He also recommended introducing “non-trade barriers” like quality standards to help local products remain competitive an approach which he says is widely used in other countries.

As Malawi pursues its industrialization goals under the Malawi 2063 development agenda, it is important for government to rethink about its reliance on international trade agreements and adopt more proactive measures to defend domestic production from unfair competition.

Malawi has a number of coal mines in the Northern Region which are mainly located in Livingstonia and Ngana Coalfields in Rumphi and Karonga Districts.

Tanzania’s restrictions in coal imports resulted in the companies losing the Tanzania export market to opt for local markets mainly in Blantyre and Lilongwe where there are experiencing stiff competition with imports from Mozambique.

Similarly, local cement producers, Shayona Cement Corporation which owns a clinker plant in Kasungu, and Cement Products Limited with a clinker plant in Mangochi, have been complaining of stiff market competition from foreign brands.

Energy
Firm seeks $146-M to develop 100MW Coal-fired Power Plant
August 01, 2025 / Modester Mwalija

Local firm Rukuru Power Company says it is seeking a term loan of US$146.4 million to finance the construction of a 100-megawatts coal-fired power plant in Rumphi District, Malawi.

Managing Director of Rukuru Power Company Lincoln Bailey says in a brief of the project published by the Malawi Investment and Trade Centre that the project which will be developed in two phases as part of a broader 250MW project, is expected to offer a reliable baseload power supply to the national grid.

He states that the first 100MW phase will consist of two units of 50MW each, using coal sourced primarily from the nearby Mchenga Coal Mine and supplemented by coal from other domestic mines.

He explained that while the financial indicators for the project such as an Internal Rate of Return (IRR) of 10.2%, a net present value of US$27.8 million and a 10.8-year payback period demonstrate its feasibility, closing the financing gap remains a critical problem.

Bailey further discloses that although a Partial Risk Guarantee had initially been secured from the African Development Bank (AfDB), it was later withdrawn due to pressure from Western financiers who have adopted a no-coal funding stance.

“We are now actively seeking strategic investors or equity partners willing to support Malawi’s immediate energy needs with a realistic view of our context,” he says.

The planned site is located 16 kilometres north of Mchenga Mine, near the M1 road and about 500 metres from Lake Malawi. Power generated from the plant will be transmitted through a new 132kV line to a substation at Bwengu, approximately 65 kilometres to the south, facilitating integration into the national grid.

He explains that the company has already made significant strides in preparing the project for implementation. These include the signing of a Memorandum of Understanding (MoU) with the Ministry of Energy, a Power Purchase Agreement (PPA) Term Sheet with the Electricity Supply Corporation of Malawi (ESCOM), and an Engineering, Procurement, and Construction (EPC) contract with Power China.

He reveals that an Operation and Maintenance agreement has also been concluded with South Africa-based Murray and Roberts.

Bailey says the project is aligned with the Government of Malawi’s energy goals and it is a major step in addressing the country's chronic electricity shortages and boosting industrial productivity.

“This is a viable and strategic investment that will provide dependable electricity to support Malawi’s economic development. This plant will help stabilize electricity supply and meet rising demand”.

Rukuru Power Company remains optimistic about securing the necessary funding and pushing ahead with the project despite the shifting of global financing landscape for coal-based infrastructure.

Malawi is struggling with power blackouts that are mainly attributed to inadequate generation and unreliability of the system as the country mainly depends on hydropower which is affected by climate change induced problems such as floods.

The country is pushing to diversify to other sources such as coal, which is a reliable source of power, but funding for coal fired power projects is a problem with financial institutions preferring renewable energy projects.

Malawi’s other planned coal fired power plant, Kamwamba in Neno, is also seeking financing after feasibility studies were successfully completed.

The country has various deposits of coal mainly in the Northern Region and lower Shire areas.

Mining
Kayelekera deal raises eyebrows
July 21, 2025 / Modester Mwalija

By Modester Mwalija

The Mining Development Agreement (MDA) between the Government of Malawi and Lotus Resources Limited to reopen the Kayelekera Uranium Mine in Karonga has raised mixed reactions among stakeholders.

 

While the MDA promises jobs, skills development, and revenue generation, Civil Society Organisationms (CSOs) are urging greater transparency, inclusion, and accountability to ensure the benefits truly reach local communities.

 

The MDA, signed in early 2024, outlines several key commitments, including a 5% royalty on gross revenue and 30% corporate tax terms that the government says are an improvement from previous deals.

 

The agreement also includes a Community Development Agreement (CDA), which sets aside 0.45% of the mine’s annual gross sales for projects in health, education, infrastructure, and technical training.

 

However, the Agreement appears dodgy on payment of Resource Rent Tax which is integral the the country’s taxation regine.

 

It reads: “20.1 Resource Rent Tax (a) (b) The Parties agree to an alternative supernormal profit tax in lieu of Resource Rent Tax being applied. The State commits to review the existing formula for implementation from FY2026. Until such time as the existing formula has been reviewed and implemented in accordance with clause.”

 

“20.1 (a), no Resource Rent Tax shall be payable by the Company.”

 

The reopening of Kayelekera comes at a time when Malawi is seeking to position mining as a key driver of its economy under the Malawi 2063 development vision.

 

As one of the country’s few large-scale mining operations, Kayelekera carries both the promise and burden of demonstrating how mining can deliver inclusive development.

 

ASX-listed Lotus Resources, which acquired the mineral rights from another Aussie firm Paladin Energy, owns 85% of the Kayelekera Uranium Mine with the remaining 15%  stakes in the hands of the Malawi Government.

 

In the previous agreement that Paladin operated on, the royalties were pegged at 3% instead of the 5% stipulated in the Laws which sparked an outcry from CSOs.

 

However, Coordinator for Natural Resources Justice Network (NRJN), Kennedy Rashid commented that while the fiscal terms of the deal show progress this time, what matters most is how effectively the commitments are carried out.

 

Rashid said: “Compared to the Paladin deal, this is definitely an upgrade, but on paper alone, it changes nothing.”

 

“Communities need to see actual benefits in jobs, training, clinics and not just promises in documents they never even get to read.”

 

The MDA indicates that over 200 people have already been employed at the site, with further job opportunities expected as full operations resume.

 

It also highlights the provisions for training and capacity building that are embedded in the Community Development Agreement (CDA) and Employment and Training Plan, with an emphasis on preparing Malawians for skilled and managerial roles.

 

However, Rashid stressed that local employment must be more than a checkbox, saying, “the government should push for guaranteed percentages of local hires. As we have seen projects where locals only get short-term, low-paying jobs while skilled positions go to outsiders,”.

 

 “Will these training programs happen consistently? Will they be monitored? That’s what people need to know,” Rashid added.

Rashid also raised concerns about revenue loss through exemptions on taxation. The MDA grants Lotus Resources various tax concessions, including relief from export duty, import duty on capital goods, and VAT, as well as resource rent tax and withholding tax exemptions.

“These exemptions may attract investors, but at what cost to national development, this is a trade-off that needs scrutiny. Every kwacha that is exempted is a kwacha not going to schools or hospitals,” said Rashid.

Rashid also touched on the issue of transparency saying although Lotus Resources conducted stakeholder engagements during the CDA process, the broader MDA negotiations were largely closed-door.

He noted that Malawi has often struggled to track and audit tax deductions claimed by mining companies, especially when the laws and contracts are not publicly accessible.

Rashid said: “Citizens deserve to know what is being signed on their behalf without access to these agreements, the communities cannot hold anyone accountable,” said Rashid.

 “If the community is expected to benefit, it must also be involved in shaping what those benefits look like.”

The agreement also obliges Lotus Resources and its contractors to procure goods and services from Malawian-owned businesses, following an approved Goods and Services Procurement Plan. The aim is to stimulate local entrepreneurship and broaden the economic benefits of mining.

In an interview with Mining and Trade Review, Coordinator for the Chamber of Mines and Energy, Dr. Grain Malunga, expressed confidence that this part of the deal will work.

“The agreement includes local procurement obligations, and companies are required to submit annual procurement plans to the regulatory authority. These plans will guide local sourcing and ensure enforceability,” Malunga said.

He described the royalty rate as competitive and appropriate saying, “the 5% royalty rate aligns with international norms. It ensures the country benefits while remaining attractive to investors.”

Malunga acknowledged that government negotiation capacity is improving but said local experts must be trusted more in high-level negotiations.

He, however, said that more can be done to build trust and capacity in mining governance with more support and autonomy given to local experts.

He said: “We have capable negotiators in our Ministries. The challenge is that they are sometimes sidelined or limited in using their full expertise. Going forward, we must trust our own people and strengthen home-grown capacity. We must also be cautious with outsourcing too much to foreign consultants and our future must be in our hands.”

The Kayelekera mine was previously operated by Paladin Energy between 2009 and 2014, before being placed on care and maintenance. During its operation, there were frequent complaints from communities and civil society organizations about lack of transparency, limited community investment and minimal national revenue gain.

Malunga said: “With the right policies and political will, Kayelekera can be a flagship for responsible mining in Malawi. But it will not happen automatically, it requires monitoring, transparency, and shared responsibility between government, company and the communities.”

As uranium prices rise on the global market and Malawi looks to diversify its economy, the stakes are high. The Kayelekera MDA may offer new opportunities but whether those translate into improved livelihoods, sustainable development, and public trust will depend on the decisions made now and in the years ahead.

 

Mining
ASM federation sets up interim Committee
July 21, 2025 / Patrick Lunda

The formation of the Federation of Artisanal and Small-Scale Miners in Malawi (FASM) has been finalised with the appointment of an interim committee.

Seasoned gemstone miner Percy Maleta was appointed the federation's Interim President, Gold Miners Association's Bishop Andrew Mankamba as Vice-President, Malawi Women in Mining Association's Nellie Nakumba as General Secretary, Ceramic Association's Chifundo Stevens got the Vice-General position, Gemstone Association of Malawi's Evangelist Philemon Galawanda took up Treasurer position with Peter Kwengwere of Gold Miners Association becoming Vice-Treasurer and Phillip Kamoto as Publicity Secretary.

The following; Emma Adams from Malawi Women in Mining Association, and Titus Tsilizani from Ceramics complete the executive committee.

A statement from the Federation dated April 28, 2025 says the formation of the interim committee is a milestone in the development of the Artisanal and Small-Scale Mining (ASM) subsector as it aims at representing, unifying and empowering small-scale miners across the country.

Reads the statement: "The federation has been established to strengthen the ASM community by providing a platform for advocacy, coordination and engagement with government, development partners, financiers and stakeholders.”

Its core roles include lobbying for policy reforms, promoting responsible mining practices, supporting the formalisation of ASM activities and enhancing access to markets, finance and technical training for miners."

The Federation appealed to miners, mineral dealers, development partners, financiers, Civil society organisations, among others, to support its course to revitalise and transform the ASM sub-sector.

ASMs are encountering a number of problems in Malawi which include lack of finance to procure loans for mining and value addition equipment as most financial institutions are reluctant to provide them loans as their trade is considered risky.

There is also lack of technical and business training which results in the ASMs being duped by foreigners who buy their products at unrealistically low prices.

The Malawi Government, through the Ministry of Mining and Trade and Industry. is, meanwhile, pursuing a programme to formalize the ASMs into cooperatives so that it become easy to reach them with training programmes.

In Malawi, many ASMs are involved in the mining of gemstones and gold, and the Reserve Bank of Malawi through its subsidiary Export Development Fund (EDF) operates a structured market to buy these precious stones in order to fight the problem of smuggling which is rife.

ASMs continue to make mineral discoveries in Malawi. Which has resulted in the emergence of ASM hotspots across the country.