Mining & Trade News

By Marcel Chimwala

CEO for Australian company Lindian Resources, Alwyn Vorster, said during a recent visit to Malawi that the Company is still aiming to have financing confirmed within the next few months, which should allow full scale mine construction at its Kangankunde Rare Earth Project in Balaka to commence later this year.  The Company has already completed numerous preliminary development activities at the project site since it became involved in late 2022. That includes extensive drilling and sampling programs as well as road and other infrastructure development. The Kangankunde Project is located 90km north of the city of Blantyre and 15km south of Balaka.

In June 2024, Lindian announced the appointment of Vorster, who brings 30 years of mining project development experience, having previously held CEO positions with many Australian Stock Exchange-listed companies. For the past year, he was also a non-executive director on the board of Lindian.

Vorster said the Kangankunde Project’s large and high-grade orebody makes it one of the best rare earth projects under development across the world. He said: “Lindian released a feasibility study on the Stage 1 development in early July. Results of the study showed that the Kangankunde Project is technically and financially robust and can deliver attractive future financial returns.”

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

Vorster explained that when in operation, the Kangankunde Project will provide significant economic and social benefits to Malawi in the form of taxes and royalties, jobs and business opportunities, and social and infrastructure investment while additional flow on benefits will be generated from bringing mining investment and development to the region.

The Kangankunde Project is rich in neodymium (Nd) and praseodymium (Pr) rare earth elements. Nd and Pr are a critical component in the production of permanent magnets. Long-term demand outlook for rare earths will continue to be dominated by magnet applications. This growth will be driven by demand for renewable energy and electrified transport applications. As such, the magnet market will be the largest growing sector and it is forecast that it will account for almost 60% of the NdPr market by 2050.

He observed that the project has a bright future due to this potential growth in the rare earth market, the availability of favourable transportation infrastructure in the project area and the good relationship and support that the project is getting from the Malawi Government and local communities.

Since taking over as CEO, Vorster has accompanied the Chairman of Lindian, Mr Asimwe Kabunga, several times to Malawi; meeting with government, community members and local Lindian employees. Vorster commented, “Mr Kabunga has been instrumental in securing the project ownership for Lindian and advancing development, and he will remain our most senior and key contact with most senior government and community people”. I am also pleased to say that we have in the last few weeks strengthened our in-country capabilities by appointing Trevor Hiwa as General Manager Malawi (Country Manager), reporting to myself. He was, until now, a civil engineering consultant designing all civil works and mine support infrastructure at Kangankunde.  Trevor will be our most senior person in Malawi and be accountable for managing key functions of Kangankunde tenure and approvals, government and community relations, legal & compliance and the Malawi corporate financials.  Chrispine Ngwena moves from his current consultancy role to become our full time Manager Community and Government Relations, reporting to the GM Malawi. He will continue the outstanding work to date of managing sustainable relationships between Lindian operations and the Kangankunde Community, local and central Government.  We will also look to appoint financial and compliance related local employees in the near future.”

In terms of operations, the proposed Stage 1 development can have a mine life of 45 years based on current Ore Reserves.  The operation will involve an open pit mining operation and processing plant to produce ~15,300 tpa premium concentrate with 55% Rare Earth Oxide (REO) grade. The clean process of gravity and magnetic separation in the process plant means that water can be recirculated to the plant, thereby reducing the total water requirement. Up to 3MW power will be provided by grid power connection (hydroelectricity) with back up on-site diesel power generation. The Kangankunde Project is located close to good supporting infrastructure which includes proximity to the main M1 highway, rail lines to ports and high voltage transmission lines.

Vorster said: “Unlike many rare earth projects, the Kangankunde Project’s concentrate products and tailings will contain very low levels of radioactive materials and other impurities. This makes the handling of the ore and waste easy and safe and enables the product to be shipped to most potential buyer countries without restrictions.”

The development schedule aims to commence main construction in fourth quarter of 2024 and commissioning of the processing plant late 2025 and first sales in first half 2026.

Vorster said the Kangankunde Project will require more than 200 full time equivalent site roles during the construction phase, and more than 100 full time equivalent site roles during the operational phase. The Company aims to employ and train many of these roles from the local Malawi labour pool.

He also said the Kangankunde Project has the support of and will significantly benefit the local economy and rural community by promoting sustainable growth, creating jobs, and investing in the community while respecting traditional Malawian customs.

Vorster said: “Lindian has been active in the local community, providing financial support for a remote policing unit and assistance to the local schools. It has worked with the local community and government on a resettlement process for community members affected by the Kangankunde Project’s development.”

“A Community Engagement Plan (CEP) has been developed in collaboration with the local government, traditional leaders, communities, organisations, and women's groups in the project area. The CEP establishes a committee comprised of community leaders, local community representatives, Government District Council officials, and senior leadership of Lindian. It will act as a forum for continued community engagement and issues management.”

“Infrastructure upgrades are also planned, including upgrading a 5km unsealed road from the Kangankunde Project site to the M1 Highway into an all-weather road to enhance safety and accessibility. Communication infrastructure implemented for the Kangankunde Project will also improve community access to reliable communications.”

By Modester Mwalija

Since 2021 the mining sector has experienced steady growth due to a supportive legal and regulatory environment that welcomes both local and international players, this is outlined in the 2023/2024 annual economic report published by the Ministry of Finance and Economic Affairs.

The report states that in 2023, the Mines and Minerals Act of 2019 was repealed to accommodate the establishment of the Mines and Minerals Regulatory Authority (MMRA).

“The MMRA has been established and has been assigned the licensing, inspection, and geological surveying functions to improve regulation and enforcement in the mining sector,” the report reads.

The report says that the Ministry launched its strategic plan for 2022–2027 and began its implementation, reaffirming the Ministry’s mission and strategic objectives.

“One of the initiatives implemented under the Strategic Plan was the completion of a mineral processing and research laboratory in Lilongwe and the installation of key equipment.”

The report further says as of December 31, 2023; the Ministry of Mining had collected 2023/24 revenue amounting to MK747,012,957.80. In total, the Ministry was expected to collect MK1,002,336,233.75, representing 3 percent growth over 2022/23 collection, largely due to increase in the number of mining license applications and revenue enhancement.

During the year under review, the Ministry of Mining, granted 546 various licenses to prospecting mining companies and individuals. 

“378 licenses were given to small scale operators namely 61 Non-Exclusive Prospecting Licenses, 168 Small-Scale Mining Licenses, 149 Reserved Minerals Licenses and 164 licenses were given to larger and medium operators including 106 Exploration Licenses, 28 Medium-Scale Mining Licenses, 1 Large-Scale Mining License, 32 Retention Licenses, 1 Reconnaissance License,” reads the report.

However, the report notes that despite these positive developments, the mining sector currently contributes only 1 percent to the national income as the sector still faces challenges including unreported income, smuggling, environmentally damaging practices, and health hazards associated with substandard mining methods, which pose significant concerns.

“Limited power supply, bad road and railway infrastructure, and other economic constraints elevate overhead and production costs, deterring investors and hindering sector growth,” says the report.

The report notes that to unlock mining sector growth, further policy reforms are necessary including streamlining the legal and regulatory framework, optimizing administrative procedures, enhancing oversight capabilities, and fostering local participation.

“Establishing robust support structures like reliable infrastructure and power supply is crucial to attract and retain investors,” it says.

The report also acknowledges that the ongoing projects in the form of strategic roads, railways, and power plants, which started in 2022/23 financial year, offer a positive outlook for the coming year.”

In the 2024/25 Fiscal Year, the government plans to undertake a number of interventions to foster productivity, transparency, and accountability in the sector so that it contributes significantly to inclusive wealth generation and economic growth in line with Malawi 2063.

By Modester Mwalija

Indications on the ground show that the Ministry of Mining is missing its target in implementing its 2022-2027 strategic plan on the aspect of empowering Artisanal and Small-scale Miners (ASMs) who are encountering persistent challenges that threaten their ability to contribute effectively to the country’s economy.

The strategic plan aims to increase investment in the mining and upstream petroleum sector by adopting the Integrated Rural Development 2017 approach, which aims to promote entrepreneurship and environmentally sustainable mining practices among ASMs.

“By the year 2025 targeted ASMs should be trained in mining and value addition and formalized into recognisable cooperatives,” reads part of the plan

However, our investigations show that ASM operators continue to struggle with issues ranging from regulatory barriers to financial limitations, potentially disrupting these efforts.

President of the Federation of Women and Youth in Mining Flore-Annie Kamanga says in an interview that while the strategic plan outlines a clear vision, the implementation process is stumbling due to the complex regulatory environment.

“The current legal framework is not ASM-friendly. The high cost of licenses and the bureaucratic problems make it nearly impossible for small-scale miners to operate legally. This situation forces many ASM operators to work informally, putting them at odds with authorities and limiting their access to formal markets,” she says.

Kamanga also highlights the problem of lack of access to finance which impedes ASMs’ ability to invest in modern equipment and technologies.

“Without adequate financial support, miners are forced to use rudimentary tools that are not only inefficient but also hazardous,” she says.

She says lack of access to established markets is another critical issue as many ASMs frequently face challenges in accessing fair markets and are often exploited by middlemen who offer low prices for their minerals.

Kamanga advocates for better market structures and value addition initiatives, emphasizing that “there should be systems in place to provide real-time market information and support for forming cooperatives to enhance bargaining power.”

Noah Alfred, an artisanal miner, provides a ground-level perspective on the challenges. He dwells on the financial constraints faced by small-scale miners, stating, “The lack of adequate funds for running a small-scale mining operation is a significant barrier. Despite government pursuing strategies like the Agriculture, Tourism and Mining (ATM), ASMs are not fully recognized or supported.”

Alfred also expresses concern over government’s restrictions of ASMs to use heavy machinery, which he believes hinders progress.

“The use of heavy machinery should be allowed as it would enhance productivity and efficiency. Relying on shovels and picks is too primitive and limits growth,” he says.

By Modester Mwaija

As Malawi approaches the half way mark of the period for the implementation of 2022-2027 Mining Strategic Plan, concerns are growing over the sector’s slow progress. Chamber of Mines and Energy in Malawi and Civil Society Organisations (CSO’s) express concern that deep-rooted challenges are delaying efforts to move the country’s mining industry forward.

The strategic plan was designed to transform the mining landscape and boost economic growth. The plan sets forth a range of objectives aimed at increasing production, enhancing transparency, and ensuring that local communities benefit from mining activities.

“The strategic plan’s mission is to coordinate, facilitate and promote participation of all stakeholders in the sustainable development, utilization and management of mineral and petroleum resources for socioeconomic growth and development,” reads the plan

Grain Malunga, Coordinator for the Chamber of Mines and Energy, says the mineral sector is developing at a very slow pace due to insufficient financial and human resources.

“We still have not seen significant progress in establishing key institutions like the Mining Development Corporation and the National Mining Company and there has been no specific targets in investments, exploration and mining,” Malunga says.

He also says the sector is facing infrastructure challenges including lack of access to reliable energy and unreliable transport networks. 

Malunga, however, acknowledges that the current regulatory frameworks are adequate to promote transparency in the mining sector. These include Mines and Minerals Act 2023, Access to Information Law and Anti-Corruption Act.

Kennedy Rashid, National Coordinator for Natural Resources Justice Network (NRJN), raises concerns over the environmental impacts of unregulated and illegal mining activities, particularly in areas like Makanjira where some parts of the Namizimu forest have been cleared, and the chemicals that are being used by Artisanal and Small-scale Miners (ASMs) in Nkhatabay and Nkhotakota in streams where gold is being panned.

“The main concerns on the environmental side include deforestation, water pollution, air pollution, land degradation, and siltation,” says Rashid.

He says the challenges can only be addressed if the Ministry of Mining is financed and adequately staffed to carry out its functions and provide services to all scales of mining activities.

“There is a need to mainstream training or capacity building on responsible mining, and increased inspections and audits by both the Environmental Protection Authority, Malawi Human Rights Commission, and Mining Regulatory Authority,” says Rashid.

He also calls on government to mainstream open contracting, beneficial ownership disclosure, revenue transparency, environmental and social impact accountability.

“This can best be achieved if we could mainstream the Extractives Industry Transparency Initiative (EITI) standards and the African Mining Vision framework (AMV). We need to localize both the AMV and EITI standards but in consideration to our context thus in respect to our laws and regulations,” says Rashid.

Despite the current challenges, the future of Malawi’s mining sector appears promising, as stakeholders continue to push for reforms and improvements that will unlock the full potential of Malawi’s mineral wealth.

By Modester Mwalija

Local quarry miner Chawezi Resources has rehabilitated a 9km access road to its quarry mine in Nathenje in Lilongwe, which is serving the local community besides making it easy for its customers to reach the mining site.

Chawezi has contracted local construction firm Plem Construction to carry out the road construction works, which are part of its major infrastructure upgrade at the quarry mine.

Chawezi Quarry Manager Leckson Chigoneka told Mining & Trade Review in an interview at the site that the Company’s commitment to corporate social responsibility (CSR) is evident in its ongoing efforts to improve the lives of those living near its operations.

“As part of our CSR programme, we have executed several projects including providing access to clean water, which was a critical need in the area and improving road accessibility to help people travel more easily from the village to town”, Chigoneka said.

The miner supplies tap water sourced from underground to households close to the site.

In addition to these efforts, Chawezi Quarry has been involved in environmental conservation through tree-planting initiatives.

 “We are committed to operate in tandem with environmental laws and regulations. Planting trees is one of the ways through which we are contributing to the sustainability of the environment around us,” Chigoneka said.

Meanwhile, Chawezi Resources is working on installing an asphalt plant at the mining site, a project which will be completed in three months time. Chigoneka described the development as a major milestone to the nation as it will play a major role in the completion of road projects in the country.

He said: “The new asphalt plant marks a significant step forward for Chawezi Quarry. It is a project that is not just big in scale, but also in terms of the benefits it will bring.”

“We expect it to take more than a year to be completed but the long-term gains for both the company and Malawi’s infrastructure development will be substantial.”

Chigoneka also said that the plant, to be installed in only three months time, will produce asphalt specifically for road construction, ensuring that Malawi’s infrastructure projects have a steady supply of high-quality materials. This in turn is expected to drive further growth in the construction sector.

“Our goal is to support the country’s development by providing the materials needed for building and maintaining roads. This project will allow us to do that on a much larger scale,” he said.

Chigoneka also said that besides the economic advantages, the new project is set to have a significant positive impact on the local community.

“We have already employed more than 40 people from the surrounding villages, and this number is expected to rise as the project progresses as the additional revenue generated by the asphalt plant will enable us to continue and expand our support to the community,” he said.

Chawezi Quarry Mine produces about 35,000 tons of quarry and quarry dust per month.

The Mine owned by Chawezi Resources, which is a subsidiary of Akatwiri Holdings, is located on a tenement area of about one square kilometre.

Besides the Nathenje project, the Akatswiri Holdings Group owns another quarry mine in Nsanje and has plans to set up quarry mines close to cities of Blantyre, Mzuzu and Zomba.

The Akatswiri diversified resources group has mineral tenements across Malawi and also offers consultancy services in mining engineering, geology and construction.

By Wahard Betha

The Ministry of Mining has assured players in the sector that it is ready and much prepared to fully implement the newly gazetted Mines and Minerals Act of 2023.

On June 28, 2024, Minister of Mining Monica Chang’anamuno gazetted the new Mines and Minerals Act of 2023 in so doing operationalising the Mining and Minerals Regulatory Authority, which has been formed under the new Act.

Director General (DG) for Mining and Minerals Regulatory Authority Samuel Sakhuta told Mining & Trade Review in an interview that the Government is ready to operationalize the Authority in accordance with the new Act but what has remained is recruitment of Board Members. 

Sakhuta said: “The government is very ready to move the new Act. The Authority has just started working but there are just a few gaps that are supposed to be filled to be fully fledged.”

“As you may be aware, the first step was to put the Act that has incorporated the Authority in place.”

“When it was commenced, the Authority had no DG, had no Board Members, but by July 31 the government had appointed the DG, meaning now we have the DG but the Board Members will be announced anytime soon. That is what we are pushing for because the DG cannot fully function without Board Members.”

Sakhuta said after the government announces the names of the Board Members, next will be induction of those members to ensure that all members are conversant with processes in the country’s extractive industry.

He said: “They (Board Members) have to move in with common knowledge of how to conduct these things. You know that the DG will only act as head of the secretariat to make sure that all operations are done as required.”

“The previous Act had no Authority. We had the Commissioner who was implementing the Act while this time we have DG as the head, with the Board Members.”

“At some point the DG may also guide on how to operationalize some of the things that are technical in nature so that the Board does not make mistakes.”

Commenting on the development, Geoscience Consultant Ignatius Kamwanje expressed excitement towards enactment of the new Mines and Minerals Act saying it contains some of the changes that match the current status of the mining sector. 

Kamwanje said: “Am very happy to see that in the new Mines and Minerals Act there are some aspects that have been put in place which are in familiarity with the current trends.”

“For example, incorporation of the Community Development Agreement (CDA) which is like now empowering communities to have that sense of ownership of the mining project within their area.”

“It is one way of empowering communities at large and it is also giving communities an opportunity to have a tradeoff with the government and mining company,” he said.

Kamwanje advised the government to ensure strict enforcement of the regulations in order to successfully implement the Act.

Consulting Partner for Perekezi Consultants Chikomeni Manda commented that the key reforms introduced in the new Act will significantly promote transparency, accountability and sustainability in the industry.

Manda said through the establishment of clear guidelines for mining sector, the Act seeks to attract more investment and create a more conducive environment for growth and development.

He also commended the Act for addressing pertinent issues such as community engagement, environmental protection and revenue sharing which are crucial in ensuring that the benefits of mining are shared equitably among all stakeholders.  

Manda said: “The new Act is expected to bring significant changes to Malawi’s mineral sector by introducing stricter regulations and increasing transparency in the industry through the Authority.”

“This could lead to improved governance and accountability as well as attracting more foreign investment.”

“Additionally, the Act may also help to address issues such as illegal mining and environmental degradation, ultimately benefitting the country’s economy and local communities.”

On implementation, he said the government needs to establish monitoring systems to track progress and enforce penalties for non-compliance.

Manda said: “It is also crucial for the government to actively engage stakeholders including businesses and advocacy groups to gather feedback and make any necessary adjustments to the Act.”

“By taking these steps the government can help ensure that the Act is effectively implemented and achieves its intended goals.”

In a separate interview, Programs Coordinator for Natural Resources Justice Network (NRJN) Joy Chabwera called on government to expedite deployment of District Mining officers and collaborate with different stakeholders conducting different advocacy activities focusing on mining in order to successfully implement the Act.

“It is very important to recruit District Mining Officers because when you go to the Councils, there are currently no officers to assist you on mining issues,” Chabwera said.

He also urged the Ministry to exercise contract disclosure in line with Extractive Industry Transparency Initiative (EITI) standards.

 “We are also expecting collaboration with Civil Society Organizations (CSOs) in successful implementation of this Act,” said Chabwera.

He also tipped the government to scale up awareness campaign on mining issues so that many Malawians are able to understand how the industry can shore up the economy.

By Tione Luwanga

In August 2024 Globe Metals and Mining (Africa) Limited became the first mining company in Malawi to comply and implement the Community Development Agreement (CDA) with the qualified communities that surround the Kanika Niobium Project since the new Mines and Minerals Act 2023 came into being.

Section 169 subsection 1 of the Act stipulates that “a holder of a large-scale mining licence shall assist in the development of qualified communities affected by its operations to promote sustainable development, enhance the general welfare of the quality of life of the inhabitants and shall recognise and respect the rights, customs and traditions of the local communities that are consistent with the constitution.”

Subsection 3 adds that no holder of large-scale mining licence shall proceed to do commercial production before the ratification of the CDA by the qualified affected community.

Chief Mining Engineer in the Ministry of Mining, George Maneya said the historic ceremony demonstrates that the Ministry of Mining is ticking. 

He said: “This is historic. This is in line with the current laws in the Mining Act. The CDA signing will now bring confidence to the community that this project will benefit them. It will also work as a reference point when one party has issues over the project.”

Maneya added that after the signing, the documents will have to go back to the Ministry for final approval.

In his speech, Paramount Chief Inkosi ya Makhosi M’mbelwa V said what was delaying the compensations was the CDA and now that it has been signed, the process should not take ages.

“The CDA is one of the factors that the investors were looking for and now that we have signed, I was reminding the Globe Metals Officials that they should expedite the process because the affected community has been deprived of much needed development because they know that their land has been designated for the mining project,” said M’mbelwa

Globe Metals and Mining Chairperson, Macleod Nyirongo, said the assessment is the company’s priority.

“The signing is a flagship which is saying the community has agreed and so Globe will go to the next step and the next step is to have an assessment. What do people have? Those people who are directly affected by the project. What is the value of the assets that they have? What are they going to be compensated for, so that they can continue with their lives?” narrated Nyirongo.

Nyirongo said following the assessment, the company will develop an engagement plan involving people around Kanyika mine area.  

“We need to prepare an engagement plan to ensure that people understand Globe’s actions are planned and predictable,” said Nyirongo.

Central to the CDA is the management of the 0.45% of gross revenue which will be remitted back to the community as part of Corporate Social Responsibility (CSR), according to the law.

To comply with this, Globe Metals has put a landmark of 0.45 percent to which Senior Chief Mabilabo said is not bad.

“Pasono pano tawapulikiska wa mgodi kuti ka wakwamba waka kwene tili kukamba nawo wa kuti pala vinthu vayamba Kwenda makola mbwenu wazakakwezgeko ndalama iyi panji kufika pa 1 percent, apo mbwe vinthu vikwenda makola. (Currently we have agreed with the 0.45 percent because the company is just starting but we have spoken to them already to consider increasing the amount if the company starts making tangible profits),” he said.

He added that a Board of Trustees, including Trustees from the Northern and Central Regions as well as the Kanyika District, has been established and mandated to handle the resources according to the needs of the community.

Affected District Councils were represented by respective District Commissioners; Rodney Simwaka of Mzimba District council and James Kanyangalazi of Kasungu who signed as witnesses.  

Speaking prior to the event, Simwaka said the two councils’ responsibility will be to monitor the seamless implementation of the CDA.

Government has already given Globe Metals the go-ahead to start the mining operations through the provision of the mining licence in 2021 and approving the Mining Development Agreement (MDA) in March 2023.

The signing ceremony was supposed to take place on June 10, 2024 but was postponed due to the tragic death of the country’s former vice president Dr Saulos Klaus Chilima.

Once in operation the Kanyika Niobium Project, with its large deposit of niobium, tantalum and zircon will be the first such mine in Africa as well as the fourth largest Niobium mine in the world, and has an estimated lifespan of about 25 years.

Niobium is used for high-tech technologies like aerospace, metal, atomic energy and electronics industries. It is also used in the medical field, optical, lighting and chemical industries. 

Globe Metals plans to build the refinery plant in Lilongwe.

ASX-listed DY6 Metals reports outstanding progress in Malawi mineral exploration projects

By Marcel Chimwala

ASX-listed DY6 Metals has reported outstanding progress in its exploration for various minerals including Rare Earth Elements (REEs), Niobium (Nb), Platinum Group Elements (PGEs) and lithium in Malawi.

DY6 is conducting exploration works in a number of its licence areas in Malawi including Tundulu in Phalombe where it is prospecting for REEs.

Tundulu REE project update

The Company’s Chairman Daniel Smith says in a Press Statement that DY6 has collected 63 metallurgical samples from 37 sample locations along the high-grade historic trench (TUTR10) in the newly granted Tundulu tenement.

The sampling is intended to be representative of the mineralised Bastnaesite and Apatite carbonatite rock types exposed within the trench. Historical results from TUTR10 returned average grades of 7.1% P2O5 and 1.8% Total Rare Earth Ore (TREO) across 83m.

Smith reports that each of the samples will be analysed separately with a portable X-ray Fluorescence (XRF) onsite at DY6’s drill core warehouse prior to dispatch to SGS Laboratories in Perth and South Africa.

He says five bioavailability samples were also taken across various trenches, targeting phosphate rich rocks with P2O5 greater than 15%.

“Bioavailability is used for analysis on phosphorous rock sources to determine the solubility of phosphate in soils. This analysis is useful in determining whether a particular phosphate rock type is suitable for direct fertiliser applications where the phosphate would be applied directly to the soil for uptake,” Smith says.

Tundulu is formed of several hills in a ring around a central vent called Nathace Hill where the majority of the historic surface sampling and drilling was undertaken. The predominant geology at Nathace Hill is REE apatite hosting carbonatites and feldspathic breccia and comprises a large inner agglomerate vent. Mineral rich carbonatite also occurs at Tundulu Hill east of Nathace and Makhanga Hill west of Nathace and is previously unexplored and prospective for REEs and niobium mineralisation.

REE mineralisation remains open towards southern and western directions of Nathace Hill and potentially extends beyond the boundaries of the previously established mineralised area over Tundulu Hill. Initial indications of mineralisation appear to be high in valuable MREEs and low measurable radioactive uranium (U) and thorium (Th). This compares favourably to Lynas Rare Earths’ Mount Weld Central Lanthanide Deposit in Western Australia where Th and U concentrations in the ore are approximately 660 ppm and 25 ppm respectively.

Meanwhile, DY6 has engaged Perth-based consulting metallurgists Met Chem Consulting for initial metallurgical evaluation to review historical testwork work programs and assess the findings from the 2017 metallurgical report, completed by the previous operators of the licence. Met Chem Consulting has 20 years' experience and has overseen beneficiation testwork and pilot programs for many ASX-listed companies and overseas rare earths projects.

“The testwork by DY6 will initially focus on validating the beneficiation results achieved by the previous laboratory. Conducting test work at this early stage enables the Company to ascertain the preliminary viability of producing two product streams; a REE commercially saleable concentrate and a mixed phosphate concentrate containing rare earths,” says Smith.

Machinga Rare Earth and Niobium Project

DY6 is also prospecting for REEs and Niobium in its Machinga tenement. Smith reports in the Company’s quarterly report for the quarter ended June 30, 2024 that during the quarter, the Company reported the receipt of assay results for its second comprehensive reconnaissance rock chip and soil sampling program completed at Machinga Main Licence Area Anomaly.

Significant rock chip samples include:

• 2.26% TREO, 0.19% Nb2O5 (MEX061)

• 1.60% TREO, 0.60% Nb2O5 (MEX098)

• 3.22% TREO, 0.75% Nb2O5 (MEX141)

• 1.00% TREO, 0.11% Nb2O5 (MEX270)

• 1.16% TREO, 0.41% Nb2O5 (MEX510)

Smith says: “The results indicate multiple parallel zones consistent with the drilling results. The area of drilling and to the southeast tend to show patchy results due to extensive soil cover derived from up slope to the west, but clearly anomalism is not being dispersed.”

“The two western anomalies where sample density is higher show a much more continuous character of greater TREO results, highlighting the scale potential of REE mineralisation in this area of the licence. This zone was only partially tested by the first phase of drilling as no drilling was completed west of the main road.”

“The extension of this trend is highly significant as this is within the Forestry Reserve, where DY6 has a forestry permit, and not within farming activities, allowing for future exploration activities west of the highway.”

Ngala Hill PGE Project

DY6 is also conducting exploration at Ngala Hill Platinum Group Elements (PGE) prospect in southern Malawi. Smith explains in the report that during the quarter, DY6 was in the process of commencing a reconnaissance program at the highly prospective PGE project.

“The Company has since commenced engagement with local community members at the project site with the purpose to facilitate awareness of the exploration program planned,” he says.

DY6 will commence a reconnaissance mapping and rock chip sampling program to validate and potentially expand the significant area of interest at Ngala Hill.

Salambidwe and Mzimba

DY6 is also proceeding with exploration for REEs at Salambidwe in Chikwawa and prospecting for lithium in the Mzimba central licence area which has just been formally granted by the Mines Department. DY6’s other remaining lithium exploration licence applications awaiting grant are Mzimba West, Mzimba South and Karonga North.

By Tawonga Nyirenda Mayuni

Investors from Morocco have expressed interest to produce fertilizer in the country using the Tundulu rock phosphate in Phalombe.

Public Relations Officer for the Ministry of Mining Tibonge Kampondeni told Mining and Trade Review that the Ministry in conjunction with the Ministry of Agriculture and the OCP group of Morocco have plans to conduct further investigations of the rock phosphate deposits of Malawi starting with Tundulu Rock Phosphate.

“The Ministry in conjunction with the Ministry of Agriculture and the OCP Africa group has plans of conducting investigations of the rock phosphate deposits in Malawi starting with the Tundulu rock phosphate with an aim of establishing a manufacturing plant for the OCP’s Nitrogen Phosphorus, Sulfur and Boron (NPSB) fertilizer in Malawi as soon as possible,” she said

Kampondeni explained that currently the Ministry of Agriculture and the OCP group intends to start crop trials using the NPSB fertilizer which is currently manufactured outside Malawi so that it can be introduced into Malawi.

Commenting on why Malawi keeps importing fertilizer when the country has deposits that can be exploited to manufacture fertilizer, Kampondeni said that the government relies on the private sector to invest and the Ministry is ready to work with them.

Kampondeni mentioned that the data that the country has is sufficient enough to kick-start the production of fertilizer locally.

She said: “We have various agro-mineral deposits like phosphate, gypsum, vermiculite, limestone, nepheline syenites and feldspars in many parts of the country.”

“Some of these have been studied in detail, for example the Tundulu phosphate deposits in Phalome and the Mlindi Ultra-phosphate in Neno.”

Kampondeni also said the government of Malawi is currently intensifying exploration to identify additional deposits of agro-minerals and estimate the quantity of the resources.

However, Kampondeni said that funding challenges are negatively affecting exploration activities such that the Ministry is working on mobilizing funding from development partners and research funding schemes.

“For example, the Ministry and the University of Kyoto in Japan have submitted a project concept entitled ‘Integrated use of agro-minerals, dry excreta and drone technologies in soil remineralization for crop production and climate smart agriculture in Malawi’ to the Japanese government under the Science and Technology Research Partnership for Sustainable Development (SATREPS) funding scheme,” she said.

Meanwhile, the Malawi government has put in place some incentives for attracting investors in agro minerals for local fertilizer production.

Kampomdeni explained that the incentives for large scale investors include; 100% capital allowance, duty free importation of equipment, Zero input VAT, accelerated depreciation because if the value capital remains high it reduces the income, loss carry-over for 10 years, and provision of concessions on consumables that are directly inputting into the production like chemicals and reagents.

OCP Africa is a subsidiary of OCP group, a leading producer of phosphoric acid and fertilizer. The group has been in the industry for over 100 years. The headquarters of OCP Africa is in Casablanca, Morocco.